Dubai South's Real Estate Boom Takes Flight

The Dh128 billion expansion of Al Maktoum International Airport in Dubai South is not just a grand infrastructure project, but also a driving force behind a real estate boom. The project is expected to create jobs and housing for over a million people in the coming years, while having a noticeable impact on Dubai's overall economic development.

Why are prices rising in Dubai South?

In the first five months of this year alone, over Dh15 billion worth of real estate transactions have taken place in this zone. Prices are expected to rise by another 15-20% in the short term, while rental fees have already increased by 20% since the beginning of the year. The investment impetus is primarily due to competitive prices, high rental yields, and expanding infrastructure.

Significant investors and large-scale capital influx

The increased demand is evident as an Abu Dhabi wealth management firm joined the market through a $1 billion partnership. Investor interest is not only focused on smaller apartments or commercial properties but also increasingly on off-plan projects and ready-to-move-in properties. Buyer and renter interest has expanded by over 20% monthly.

New infrastructure, new opportunities

A key component of the project is the construction of the Dubai Metro Blue Line, which will be directly connected to the new airport, along with the Etihad Rail network, which will also have a stop at Al Maktoum Airport. These transport links will not only improve accessibility but also significantly increase property values.

Price-to-value ratio: the advantages of Dubai South

In the Dubai South area, the average price per square foot ranges from Dh750–Dh850, whereas in downtown zones like Downtown Dubai or Business Bay, it is Dh2,000–Dh2,500. This represents a price level that is up to 60% lower, making the region particularly attractive for those looking to enter the early stages of a long-term growth cycle.

The airport's impact on the overall economy

The Al Maktoum Airport expansion affects not just the real estate market but the economy of the entire emirate. Forecasts suggest that by 2030, the aviation sector will contribute to more than 30% of Dubai’s GDP. The industry already directly or indirectly supports hundreds of thousands of jobs, and this trend will continue with the airport's expansion.

A past example: what happened after the DXB Terminal 3?

The current development wave is reminiscent of the 2005 opening of Terminal 3 at Dubai International Airport, which saw property prices in nearby areas like Dubai Marina or Al Barsha almost double within three years. Experts believe we are on the cusp of a similar but broader growth period.

(Source of the article based on statements from key players in the Dubai real estate market.)