The CEO of Samana Developers has stated that the Dubai property market requires an additional 10% to 20% supply to curb rising rentals and enhance affordability in the city.
The statement follows the steady increase of rents over the past few years, driven by strong demand from buyers, investors and tenants.
“Dubai essentially needs extra 10% to 20% more units than the current demand because the rising rents are making it increasingly expensive. There is an undersupply, as new launches are being sold out within a day.
“We sold 80% of our stock in 72 hours. When the top developer sells out in just four hours and the seventh largest does so in three days, it shows the demand is significantly outpacing supply. This trend will persist because Dubai continues to perform exceptionally well.”
Imran Farooq, CEO, Samana Developers
Major local developers such as Emaar Properties, Nakheel, Damac Properties, Danube Properties, Samana Developers, Binghatti, and Sobha Group have been the leading contributors to Dubai’s property market.
Collectively, nine developers account for around 90% of new launches. Samana Developers comes in seventh with a 4.5% market share.
Nearly 86,000 off-plan units have been launched in the first eight months of this year and another 35,000 to 40,000 are set to hit the market in the last four months, according to the latest Property Monitor report released by Cavendish Maxwell.
However, industry experts continue to highlight the current undersupply issue, predicting it will take several years for supply and demand to balance out, pushing up rental prices.
“Landlords are not concerned because properties are being rented quickly at market rates, and within a week, they can rent for DH5,000 more.
“To make Dubai more affordable, we need to increase supply, as the market is currently undersupplied. The rise in rents need to stop.”
Imran Farooq, CEO, Samana Developers
Samana Developers currently has 42 real estate projects across various development stages.
In Juy, they launched the Ivy Gardens 2 in Dubailand. The project, valued at AED 855m, has been designed to increase levels of sustainability in the Emirate.
The Ivy Gardens 2 is scheduled for completion in November 2027, and will comprise 35 floors featuring a total of 843 residential units.
Each apartment will harness large open windows, sustainable building materials and smart-home systems to ensure environmental protection.
The development includes a private swimming pool and advanced purification, which will enhance the air quality.
Samana Developers said it had established a new contracting company to help manage the Emirate’s growing expectations for resource constraints in its fast-growing real estate sector.
