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Dh128b Al Maktoum International Airport project fuels real estate boom in Dubai South
Property prices in Dubai South are forecast to increase by a further 15-20% in the near term
- PUBLISHED: Fri 13 Jun 2025, 1:28 PM
Property prices in Dubai South are forecast to increase by a further 15-20 per cent in the near term, as the Dh128 billion ($35 billion) expansion of Al Maktoum International Airport in Dubai South is fuelling a major real estate boom in the area, data shows.
According to data from Betterhomes, property transactions in the area have already exceeded Dh15 billion in the first five months of 2025.
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Investor interest in Dubai South is accelerating, driven by competitive pricing, strong rental yields, and ongoing infrastructure development.
Rental rates have risen 20 per cent year-to-date, with a sharp increase in both off-plan and ready property sales. Betterhomes has also recorded over 20 per cent monthly growth in buyer and tenant inquiries, while institutional capital is entering the market, most notably a $1 billion investment partnership between a major Abu Dhabi-based asset manager and Brookfield.
The $35 billion terminal expansion in Dubai South is set to create employment and housing opportunities for over one million people, with far-reaching effects across multiple sectors. As job creation increases, population growth is expected to follow, driving greater demand for housing and supporting broader economic development.
Surrounding areas are already experiencing a rise in transactions, property prices, rental rates and yields. The aviation sector alone is projected to contribute over 30 per cent to Dubai s GDP by 2030. In 2023, Dubai Airports and the Emirates Group supported approximately 329,000 direct and indirect jobs. The government has already begun awarding major contracts, including a recent Dh1 billion contract for the airport s second runway, demonstrating a strong commitment and steady progress on the project.
With demand surging and a long-term development pipeline in motion, Dubai South is emerging as one of the UAE’s most promising real estate growth corridors.
“The development of Al Maktoum Airport is not just a milestone in aviation, but a catalyst for the next chapter of Dubai’s real estate growth,” said Louis Harding, CEO of Betterhomes. “We’re already seeing the ripple effects in Dubai South. This is the early stage of a long-term growth cycle, and Betterhomes is well-positioned to guide both investors and end-users through it.”
Infrastructure enhancements, including the Dubai Metro Blue Line and Etihad Rail, will further strengthen demand, and a recent Dh1 billion contract award for the airport’s second runway signals continued momentum. Average prices in surrounding areas remain up to 60 per cent lower than in prime districts like Downtown Dubai, offering attractive value.
A similar growth pattern was seen following the launch of Terminal 3 at Dubai International Airport in 2005, when surrounding areas such as Dubai Marina and Al Barsha experienced substantial appreciation. Between the launch and early 2008, average sale prices had nearly doubled.
The outlook for Dubai South remains strong. Currently, Dubai Industrial City has an average sale price of Dh750 per square foot, while Dubai Investment Park is priced at Dh850 per square foot. These figures are approximately 60 per cent lower than those in prime areas such as Downtown Dubai and Business Bay, where prices typically range between Dh2,000 and Dh2,500 per square foot. Many of the surrounding areas showing similar trends, analysts say.
This substantial pricing gap positions Dubai South as an attractive opportunity for both investors and end users, analysts saud. The area’s appeal is further supported by upcoming infrastructure developments, including the Dubai Metro Blue Line, which will connect to Al Maktoum Airport, and the Etihad Rail network, which lists the airport as a designated stop. “These projects are expected to significantly improve regional connectivity, thereby driving further demand and supporting capital appreciation,” an analyst said.
Associate Editor Somshankar Bandyopadhyay brings more than three decades of experience to the KT newsroom. Currently, he manages the news production of the business section, ensuring that the top economic and business news of the day reaches its readers.