Over 1 million more residents expected, driving demand for new homes.
Dubai’s population is on course to hit the five-million mark by 2030 after surpassing a new milestone today as one of the world’s fastest-growing cities.
The city’s population officially moved past the four-million mark this morning, as revealed in a market update from DXBinteract, which tracks Dubai’s demographic evolution, growth path, and its impact on the property sector.
It says the addition of more than one million residents before the end of 2030 will create demand for around 350,000 new homes according to average household size. But allowing for multiple-home owners, non-resident buyers, normal vacancy levels, and the need to replace older buildings, that total could reach 500,000.
Based on data from Dubai Statistics Centre, the report says that Dubai has added over 231,000 new residents since last year, a 6.13% increase. Since 2011, Dubai’s population has now doubled in size, growing from 1.93 million to the four million-mark in just 14 years.
“Dubai’s growth story reflects its transformation into a global hub for business, tourism and real estate,” said Firas Al Msaddi, CEO of fäm Properties, who developed the AI-driven DXBinteract platfom.
“The city’s rapid expansion stems from a sustained influx of expatriates, global investors, and talent attracted by Dubai’s tax-free environment, infrastructure, and business-friendly policies.
“This surge has profound implications, from housing demand and infrastructure expansion to the competitive landscape of Dubai’s booming real estate ecosystem.”
Al Msaddi picks out several real estate highlights set to define Dubai’s next chapter:
- Market structure: Over 3,000 developers and 40,000 agents expected by 2030, with consolidation among agencies and a bigger role for AI-led platforms.
- Luxury expansion: HNWI migration will keep prime communities like Palm Jebel Ali, Dubai Hills and Emaar Beachfront in the global spotlight.
- Rental yields: Average 6–7% yields, with select micro-markets delivering 8–9%.
Al Msaddi also identifies four key factors which are driving the surge in Dubai’s population:
- Job opportunities: A thriving business ecosystem attracting global talent.
- Investor-friendly environment: No income tax, full foreign ownership in free zones, and attractive visa options.
- Lifestyle & infrastructure: High-quality healthcare, education, public services, and luxury living.
- Global events: EXPO 2020’s legacy and upcoming mega projects continue to draw global attention and residents.