The increasing population and decreasing household size continues to drive residential demand.
According to the Dubai Statistics Centre (DSC), the population of Dubai has grown from approximately 860,000 in 2000 to 3.1 million in 2018. DSC also identified a further 1.2 million “temporary present individuals” during peak hours.
Following the expansion of population at a compound annual growth rate (CAGR) of 8% between 2000 to 2018 the future growth rate for Dubai is forecast by the UN Population Division to slow, but in line with that expected of a maturing metropolis.
Data provided by Oxford Economics forecasts a reduction in average households from 3.9 persons in 2000 to 3.6 persons by 2035.
Dubai has seen total households grow from approximately 156,000 in 2000, to approximately 560,000 in 2018.
Such growth continues to drive demand for housing with net additional demand between 2018 to 2035 forecasted as approximately 176,000 additional households.
Looking at the historic growth of Dubai, it is expected that future population growth will continue, which is likely to be a catalyst for longer term residential market prospects.
It is more likely that affordable housing and right sizing residences will cater to housing demands of smaller families in the long run. As developers realize these aspects, family friendly communities are on the rise in Dubai.
(Inputs from REIDIN and Deloitte)