Page 88 - UP PR REPORT - JANUARY 2026

Developers have been launching a steady stream of projects amid rising demand from oversees
investors and an influx of new residents coming from around the world. However, the surge in
supply is fuelling fears of a possible property market slowdown in 2027 as many of the new

developments get completed.

Dubai may find itself with an annual surplus of 30,000 to 40,000 housing units by 2027, according

to Bloomberg Intelligence analyst Edmond Christou. That may signal price-adjustment risk even as
rental yields remain attractive enough to draw investors and absorb some excess, he said in a

report.

Union Properties will launch two billion dirhams (S$697.4 million) worth of projects in 2026 to add
to its existing pipeline which is worth four billion dirhams, said Khansaheb. Despite the five-year

rally, developers’ profit margins “are not abnormal” and remain healthy, he said. He sees
opportunities in commercial, industrial and hospitality development going forward.

“Years ahead, the challenge will not come from demand but from supply-chain management.

We’ve seen some inflation in the cost of construction,” he said. “The challenge forward is to
manage costs and manage (the) supply chain to be able to deliver on quality and value to our

clients.”

Union Properties’ shares lagged competitors amid probes into alleged financial violations within
the company by former managers which required a lengthy restructuring of the operations. But it

has now been catching up, with the stock more than doubling over the past year to about 0.83
dirhams. BLOOMBERG

https://www.businesstimes.com.sg/property/dubai-property-ceo-expects-supply-new-homes-
moderate?ref=pulse