Dubai real estate sees boom of new small developers, but not all will survive

04/12/2025 04:07 AST

Dubai has seen a mushrooming of small property developers, and some may not survive the competition, say industry executives.

"The mainstream developers are busy because they can sell whatever they can produce. So I don't see the trouble there (in terms of oversupply). The issue is that there is a mushrooming of small developers, and everybody thinks they are a developer who requires an army of resources, and the product needs to be promoted across various continents, and that's where the (successful) business model is. I'm not sure if they have got their business model right," said Imran Farooq, CEO of Samana Developers.

The Dubai property market has been growing at an exceptionally fast pace over the past five years, driven by the influx of new expatriates, professionals, investors, and millionaires.

This strong demand has attracted many new developers to Dubai from Asia, the Middle East, and Europe, eager to capitalise on the real estate market rally.

According to data released by Cavendish Maxwell, the number of new launches continued to rise in the first half of 2025, with approximately 325 projects bringing over 87,900 residential units to the market, amounting to nearly 490 units launched per day.

"When there is a big mushrooming of small players in any industry of the world, it may become difficult for all of them to survive. The resources with these top developers are immense. We also grew continent-wise, region-wise, and city-wise. And we have lots of resources to keep activating newer markets every quarter, every half, on a yearly basis," Farooq added.

Wissam Breidy, CEO of HRE Development, said it's a free market; therefore, building a reputation the right way is key.

"Reputation is more valuable than money. Once you have a good reputation as a developer, people will trust you. It's not about sales. Reputation comes after sales. It's key to build the right relationship and take care of your customer. So people start focusing on the competition and what their competitors are doing. We focus on our clients, data, and the people," he said.

Already surpassing last year's figures
By the end of October 2025, the number of apartments sold in Dubai had surpassed last year's figures. Around 99,758 apartments were sold in the first 10 months of this year, compared with 94,459 in the same period last year.

"Dubai is the most wanted brand in the world, so everybody from any part of the world wants to buy a piece of real estate here. Hence, it's doing extremely well. When we look at the traffic on the road, that tells you a completely different story," said Farooq.

"So, if you take forecasted numbers based on the same trend, 2025 is projected to see 120,000 apartments, representing a 27 per cent growth in the off-plan apartment sale. That's a huge jump. If you look at all kinds of property, this year will be 20 per cent better than 2024. That means the trend is extremely strong," he said.

Wissam Breidy of HRE Development said the real estate market in Dubai and the UAE is "entering an era of strategic growth."

"When you are investing in a country, you look into the track record. I trust this country's track record. Covid-19 was a turning point for the UAE because the government managed it effectively. None of the investors had any challenges that others faced in other countries. I trust the UAE because its leadership always has a plan beyond what we expect.

"When the world was facing the challenges of Covid-19, the UAE introduced the Golden Visa. So, now we see different people coming to live in the UAE. Earlier, we had individuals coming to work and leaving. Now, you see people bringing their family as they have a 10-year residency. They are searching to buy homes here, not just apartments," he said.

Khaleej Times