Dubai is building an entire city in its south as its Dh128-billion passenger terminal at Al Maktoum International Airport takes shape. Property experts said that Dubai South is now among the top five areas in demand for new developments across the emirate.
As he announced plans for the world’s largest airport, Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, said the area would witness housing demand for a million people.
Rising Property Demand
Data from the real estate portal Property Finder shows that buy listings for Dubai South – next to the new airport – grew three times faster than the overall market between Q2 and Q3 of 2024, “reflecting its rising popularity”.
“The share of users on the Property Finder platform looking for properties in this area surged from 9% in January to 16% by mid-year in 2024 – following Sheikh Mohammed’s announcement … to transition operations from Dubai International Airport to Al Maktoum International Airport,” Cherif Sleiman, chief revenue officer at the company, told Khaleej Times.
The property portal has seen “consistent increases” across supply and demand, with growth prospects continuing to look strong. “In 2024 alone, we added 32 new developments from the area to our Property Finder New Developments catalog. Interest in new projects has also grown by 15% MOM, showing sustained buyer enthusiasm.“
Market Growth and Strategic Location
The company has seen the average price for off-plan villas increase by 43%, and those for off-plan apartments rise by 12% in 2024.
According to real estate consultancy Knight Frank, Dubai South is considered a “strategic hub” that is currently offering residential and logistics opportunities such as free zones, business parks, and residential master plans.
“Dubai South is rapidly gaining popularity as a residential destination due to its affordability, convenient location near Al Maktoum International Airport, and ongoing development,” said Shehzad Jamal, partner at the consultancy. “This is reflected in the high occupancy rates of its residential communities. Based on REIDIN, apartment occupancy in 2023 was 87.6%, increasing to 91.6% by 2024.“
Average Rental Prices
Annual rents across the neighborhood are “highly competitive” when compared to the overall market average, according to Property Finder.
- Studios: Dh42,000
- One-bedroom apartments: Dh59,999
- Two-bedroom apartments: Dh80,000
Knight Frank gave average rents of villas and townhouses based on rental listings and transactions outlined across Property Monitor and Bayut over the past six months:
- 2-bedroom: Dh92,000
- 3-bedroom: Dh110,000
- 4-Bedroom and larger: Dh145,000-220,000
Property Sales Prices and Future Outlook
Sleiman said diverse options across neighborhoods attract seasoned investors and first-time buyers. “Around 31% of properties are priced below Dh1 million, making it an accessible option, while 40% are in the Dh1-3 million range, catering to mid-range buyers. For those seeking high-value opportunities, 30% of properties are above Dh3 million.“
Jamal explained that the area has a freehold ownership structure for residential properties, enabling UAE nationals and foreign investors to purchase and own homes or land. “This has contributed to the area’s appeal among a diverse range of buyers.
Property Finder listed average sales prices in the area:
- Studios: Dh600,000
- One-bedroom apartment: Dh959,999
- Two-bedroom apartment: Dh2,358,940
- Villas: Dh1,922,500
Knight Frank expects real estate prices to remain stable or “trend positively”.
Sleiman added: “With the vision for Al Maktoum International Airport to become the world’s largest hub in capacity, Dubai South communities are likely to see even greater demand for residential and commercial spaces.“
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