The city-state, known for its luxury skyscrapers and tax-free living, has seen record-breaking real estate transactions, with rental prices in key areas rising by as much as 20% in the past year, according to Engel & Völkers.
The Economic Times reported that despite the constant wave of new projects, demand continues to outpace supply.
Hasnain Malik, managing director at Tellimer, has warned that “Dubai is on steroids but affordability risks are increasing.”
Under Dubai’s current expansion plans, its population is expected to hit 5.8 million by 2040, up from 3.8 million today – a staggering increase for a city that had just 255,000 residents in 1980.
Since foreign property ownership was legalised in 2002, Dubai’s real estate market has surged, attracting an influx of high-net-worth individuals and investors.
But with this spike has come a sharp rise in property values and rental costs, forcing some residents to move to less central areas or neighbouring emirates like Sharjah.
Dubai’s roads are feeling the strain, as one million commuters from other emirates clog major highways daily.
The 12-lane Sheikh Zayed Road, the city’s main artery, has seen worsening traffic as more residents opt for longer commutes over rising housing costs.
The congestion has grown so severe that even prominent Emiratis are speaking out.
Habib Al Mulla, a well-known Emirati lawyer, has voiced concerns about Dubai’s growing pains.
In a December post on X (formerly Twitter), he acknowledged authorities’ efforts but called for “a set of immediate and long-term mechanisms” to tackle congestion.
Dubai’s Road and Transportation Authority (RTA) reports that while global vehicle growth has averaged 4% over the past two years, Dubai’s increase has been 10%. The surge in registered vehicles has even led to longer license plates to accommodate the demand.
Dubai’s surging population has also reignited concerns over the shrinking percentage of Emirati citizens.
Though the official number is not disclosed, estimates suggest Emiratis make up just 10% of the UAE’s population of over 9 million, a percentage likely dropping further as foreign workers and investors flood in.
