The number of new homes in Dubai is expected to grow by 34,300 in the next two years, as a prolonged economic slowdown hits demand.

Dubai will have more than 340,000 residential units by the end of this year and is already oversupplied by 25%, according to Colliers International, the property consultant.

'We see no reason to believe this will improve; it should actually worsen,' said JP Grobbelaar, the director of research and advisory at Colliers.

The National,