Tuesday, September 30, 2025

Dubai Hills

 

Will There Be an Oversupply in Dubai Hills?

Currently Under Construction:
- There are 12,000 units under construction in Dubai Hills.
- Out of these, 11,600 are apartment units, that’s double the current ready apartment supply.
That may sound like a lot, but here’s where it gets interesting...

Delivery Schedule:
- Dubai Hills is expected to deliver about 2,900 units per year until 2029.
(This gradual rollout is important, it avoids flooding the market all at once.)

Impact on Rent and Prices:
- Despite the new supply, rents have remained stable for the past 6 months.
- At the same time, sale prices continue to grow steadily.
This is a strong signal of healthy demand.

Absorption Rate Tells the Story:
- 2024: 1,600 property transfers
- 2025 YTD: 1,144 transfers
- Rented Units: 3,800 in 2025, compared to 5,400 in 2024

What this tells us is that Dubai Hills is absorbing supply efficiently, and it’s not just investors flipping units.
Most buyers are long-term holders who are either living there or renting for yield.
Why Dubai Hills Remains Stable:
The key reason? The developer & community manager.
They are managing the community and development pace with care.
My Take:
Dubai Hills is not heading toward oversupply, it’s a well-managed, high-demand community.
As long as delivery remains steady and controlled, supply will meet demand, not exceed it.
Absorption, demand quality, and developer control is what makes a community resilient.

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