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The emirate saw a completion rate of only 56% over 2022–2024 Dubai could experience delivery delays, which may help “smooth” the rise in supply, Fitch Ratings said in a report. The observation is based on the previous completion rates of some major projects. Over 2022–2024, 174,000 units were projected to be delivered, while the actual new supply was 97,000 units, a completion rate of only 56 percent, the rating agency said. The rate of delivery of new units depends on multiple factors, including the availability of skilled labour and contractors. While highly rated developers, such as Emaar Development, have a record of delivering projects on schedule, the off-plan sector is subject to regulatory oversight regarding the rate of new units entering the market. Fitch expects rising deliveries will lead to a record increase in supply, but “natural” demand, driven by population growth, will be lagging. The stock of residential supply could grow on average by 16 percent over 2025–2027, assuming there are no delays in deliveries, compared with forecasted population growth of 5 percent, the rating agency said. |
