With the launch of the massive AED 128 billion expansion project for Al Maktoum International Airport (DWC), Dubai South is rapidly emerging as one of Dubai’s most important new real estate hubs. In addition to increasing passenger handling capacity to 260 million per year, this infrastructure upgrade has caused a significant increase in demand for real estate purchases and rentals in the region.
The average price of real estate in Dubai South and the surrounding areas is still about 60% less than that of central locations like Downtown or Business Bay, where prices range from AED 2,000 to 2,500 per square foot. For example, the average sales price in Dubai Investment Park is approximately AED 850, while in Dubai Industrial City it is approximately AED 750. Both long-term investors and end users have flocked to the area because of this price differential.
Real estate deals in Dubai South totaled more than AED 16.1 billion in 2024 alone. It’s interesting to note that they have already exceeded AED 15 billion in the first five months of 2025. Monthly increases in demand for purchases and rentals have surpassed 20% during this same time period, while annual rental rates have increased by 20%. These numbers show the concurrent rise in demand for off-plan projects and ready-to-move-in properties.
Access and transportation in the region are expected to be completely transformed by projects like the construction of the UAE National Rail (Etihad Rail) station in Dubai South and the extension of the Dubai Metro’s Blue Line to Al Maktoum Airport. The project’s quick progress is further demonstrated by a recent AED 1 billion contract to build the airport’s second runway.
Significant institutional investments are joining the market in tandem with rising retail demand. Strong institutional confidence in Dubai’s real estate potential is demonstrated by a recent $1 billion partnership between a UAE asset management company and international investment firm Brookfield. Such large-scale investments usually mark the start of long-term growth cycles, as was the case with the opening of Terminal 3 at Dubai International Airport in 2005, which caused real estate prices in neighborhoods like Dubai Marina and Al Barsha to double by 2008.
Property prices in Dubai South are expected to rise by an additional 15 to 20% in the near future due to the area’s rapid development, improved connectivity, and rising investor interest. Even though prices are still quite affordable, this window of opportunity might not last long. Dubai South is poised to emerge as one of the UAE’s most popular destinations for high-yield investors and homebuyers.
Dubai South is poised for a significant investment leap thanks to the substantial infrastructure improvements at Al Maktoum Airport, new public transportation initiatives like the metro and rail lines, and the arrival of significant domestic and foreign investors. It is among the most alluring choices for purchasing or investing in real estate in the United Arab Emirates due to its reasonable costs and anticipated 15-20% growth potential. Though it might not last long, the opportunity is still present.
Source: https://www.propertynews.ae
