Moody’s sees indications Dubai property surge is tapering off

Dubai’s five-year property boom is showing signs of slowing down.

A surge of new homes coming onto the market this year is likely to cool the pace of rising prices, according to a report by Moody’s.

The ratings firm said that major Emirati developers and banks are in a strong enough financial position to cope with a softer market. 

Population growth and continued demand from wealthy overseas buyers should prevent a sharp downturn, according to a report by Moody’s Vice President and Senior Analyst Lisa Jaeger.

Since 2021, developers have been capitalizing on high prices to sell an increasing number of homes off-plan for completion several years later.

This will drive a surge in new deliveries between 2026 and 2028 in Dubai in particular, before tapering off, Jaeger writes.

“The slowdown will prompt developers to scale back the launch of new projects and lead to lower new sales values over the next 12 to 18 months, a trend we expect will persist for several years,” the report says.