The Middle East Macro Monthly report from Citibank claims that this large number of new homes can be absorbed annually into the market because of the emirate’s current population boom, which is surging by around 7% each year.
This boom means Dubai can absorb this number of new homes, while still maintaining the current vacancy rates seen across the country.
The report also states that vacancy rates are at 12% this year and predicts that the level of housing demand in the country will rise in line with expected supply in forthcoming years.
This news follows what was an extremely positive year for Dubai’s property market with house prices rising by almost 35% throughout the year, according to Knight Frank’s Global House Price Index Report.
The report also stated that mainstream prices were still 25% below the peaks seen in 2008 highlighting the growth available within the market.
Not only did the country’s property market boom last year, the country also attracted over a million more tourists than the previous year putting it on target to achieve its 2020 vision, by when the emirate hope to receive 20 million tourists, double the amount in 2010.
A total of 29,000 new hotel rooms are expected to be built each year until 2016 to meet this tourist demand; an increase in hotel rooms which will see Dubai’s number of rooms swell from 84,000 to 113,000.
This vision is also within reach because of the emirate’s unique accessibility having around 145 world airlines currently connected to the country.
Plans to up this figure on the completion of phase 2 of the Al Maktoum International Airport are also set to aid the emirate in its aim to achieve its 2020 vision.
Once complete, the airport will be able to handle 160 million travellers and 12 million tonnes of cargo annually.
Article adapted from The National.