Dubai South Sees Surge in Demand as New Airport and Developments Take Shape

Shahba Mayyeri -

Dubai's ambitious plans for its Dh128 billion-passenger terminal at Al Maktoum International Airport are reshaping the southern region, with Dubai South emerging as one of the emirate’s top areas for new developments.

The area’s growing popularity is being driven by a combination of strategic location, large-scale infrastructure projects, and increasing demand for housing.

Key developments in Dubai South:

  • Rising Demand for Properties: Property Finder data reveals that the number of property listings for Dubai South grew three times faster than the overall market between Q2 and Q3 of 2024. User interest surged from 9% to 16% during the same period.
  • Real Estate Growth: In 2024, 32 new developments were added to Property Finder's catalog. There has been a consistent increase in both supply and demand, with off-plan villa prices rising by 43%, and apartment prices by 12%.
  • High Occupancy and Affordable Rentals: Knight Frank reports that residential occupancy rates have increased from 87.6% in 2023 to 91.6% in 2024. Average annual rents in the area are competitive:
    • Studios: Dh42,000
    • One-bedroom apartments: Dh59,999
    • Villas: Dh92,000 - Dh145,000
  • Affordable Property Options: About 31% of properties are priced under Dh1 million, while 40% fall within the Dh1-3 million range. High-end properties above Dh3 million comprise 30% of the market.
  • Freehold Ownership: The freehold structure allows both UAE nationals and foreign investors to own property, enhancing its appeal to a diverse range of buyers.

As Al Maktoum International Airport grows to become the world’s largest hub, demand for residential and commercial spaces in Dubai South is expected to continue its upward trajectory.

News Source: Khaleej Times