The Dubai property market on an average can absorb 25,000 units a year in future to maintain current vacancy rates, said a report citing a financial expert.

The drop in construction activity in the past few years has given Dubai's economic revival time to reduce significantly the residential supply overhang problem. There is now enough space for new project launches, stated the Emirates 24|7 report.

"Vacancy rates in the residential markets peaked in 2010 and have been coming down steadily ever since. What's more, we believe there is scope for the market to absorb further development given the current rate of population growth (estimated at around seven per cent),"
remarked Farouk Soussa, the Middle East economist at Citi, a leading global bank.

"Current levels of construction activity, in other words, are not out of line with market fundamentals. Equally importantly, they are not currently creating the kind of distortions to overall economic growth that occurred in the lead up to 2008," he added.