Dubai Plan 2040: Approximately 550,000 new housing units are needed
To accommodate its anticipated 5.4 million inhabitants by 2040, analysts predict that Dubai would need between 483,000 – 550,000 new housing properties over the following two decades. According to ‘the 2040 Urban Master Plan’, which was unveiled in early March, Dubai’s population would rise from its current 3.4 million to 5.8 million by that time. There will be five major metropolitan areas in the emirate, including 2 additional ones.
Based on an estimated population of 3,411,200 from the Dubai Statistics Center as of 2020, it is estimated that 483,550 more units will be needed by 2040, assuming an average household size of 4.9. For the following 20 years, this equates to about 24,000 units annually.
Dubai’s 2040 Urban Master Plan builds on good foundations by strengthening Dubai’s competitiveness as a worldwide travel destination and fostering a community where people from all over the world might thrive with sustainability, diversity, and inclusivity as key focal areas.
The amount of additional supply needed over the next 2 decades will depend on a variety of qualitative and quantitative parameters, some of which may vary significantly over the next several years. Approximately 555,000 residential units are now available in Dubai. By 2040, we estimate to need almost twice as many people to serve the entire population.
The middle-income section of the market is probably going to need the most significant amount of supply to be provided, even though there will likely be a range of chances for builders from the inexpensive to the super-prime portions of the market.
The construction of 5 Urban Centers, including Deira or Bur Dubai, Business Bay or Downtown, Dubai Marina or Jumeirah Beach Residence, Expo 2020, and Silicon Oasis, will bring about significant improvements to the city over the next 20 years. The proposal also seeks to add 168% more business space, 134% more tourism space, 25% more land for medical and educational facilities, and a staggering 400% more public beaches. Additionally, 60% of the city has been designated as a nature reserve. Additionally, 55% of the population will reside within 800 metres of the nearest public transportation hub. This means that getting to the metro station won’t take as long!
The new urban plan intends to build Dubai’s lifestyle for the next 20 years, offer the highest standard of living, and clear the way for the city’s upcoming significant residential and economic growth.
The Goals for the Sector
In the UAE’s real estate market, there has been a chronic problem with oversupply. By 2040, when the population is predicted to have doubled, this issue won’t be a concern for the property industry. The population of Dubai will increase from 3.5 million this year to 5.8 million by 2040, based on ‘the Dubai 2040 Urban Master Plan’.