Search
 

Tight Dubai Housing Market Prompts Development

DUBAI-With vacancy rates at less than 1% across the city, developers are responding; approximately 110,000 apartments are under construction.

By Brian K. Miller | Updated on December 27, 2006

(To read more on the multifamily market, click here.)

DUBAI-Housing development has not kept up with demand here in recent years but the situation is changing, according to a new report from Colliers International. In response to vacancy rates that are less than 1%, some 240,000 new housing units are slated to come online here before 2010, the majority of them apartment units. Of the 126,500 units under construction in Dubai, all but 16,500 are apartments units, according to Colliers’ research.

An estimated 100,000 people move to Dubai every year. Since 2000, demand has outstripped supply by 6%. This has occurred despite a 42% rise in the number of residential buildings between 2002 and 2005 to 79,000 and a 61% increase in the number of overall housing units to 234,930. The result has been a drastic increase in rental rates. Rents have risen at an average clip of more than 20% over the past three years, according to Colliers International.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.