Dubai is witnessing the rise of a new city in its southern region, driven by the development of Al Maktoum International Airport, set to become the largest passenger terminal in the world. Dubai South, a strategic and rapidly developing hub, is becoming one of the most sought-after areas for residential and commercial opportunities. With affordable rents, prime location, and significant investment potential, this burgeoning city is reshaping Dubai's real estate landscape.
A Vision for the Future
Dubai South is envisioned to accommodate housing demand for over a million people as it grows alongside the Dh128-billion Al Maktoum International Airport project. This area has already become one of the top five locations for new developments in Dubai. The transition of operations from Dubai International Airport to Al Maktoum International Airport is fueling demand, with increased interest in residential, commercial, and logistics opportunities.
Rising Demand
Between Q2 and Q3 of 2024, the buy listings for Dubai South grew three times faster than the overall market, signaling its increasing popularity. User interest surged from 9% in January to 16% by mid-year in 2024, showcasing sustained enthusiasm for properties in this area. In just 2024, over 30 new developments have been introduced, reflecting a steady rise in both supply and demand.
Affordability and Competitive Rents
One of Dubai South’s key attractions is its affordability, especially compared to other areas in Dubai. Current average annual rents include:
· Studios: Dh42,000
· One-bedroom apartments: Dh59,999
· Two-bedroom apartments: Dh80,000
· Two-bedroom villas/townhouses: Dh92,000
· Three-bedroom villas/townhouses: Dh110,000
· Four-bedroom villas and larger: Dh145,000-220,000
These competitive rental rates make Dubai South an attractive destination for families, professionals, and investors alike.
Property Prices
Dubai South offers a diverse range of properties, appealing to both seasoned investors and first-time buyers. About 31% of properties are priced below Dh1 million, making them highly accessible. Mid-range buyers can explore properties in the Dh1-3 million range, while high-end options above Dh3 million cater to those seeking luxury investments. Average property prices include:
· Studios: Dh600,000
· One-bedroom apartments: Dh959,999
· Two-bedroom apartments: Dh2,358,940
· Villas: Dh1,922,500
A Strategic Hub
Dubai South is more than just a residential area; it is a strategic hub offering free zones, business parks, and master-planned communities. The freehold ownership structure allows both UAE nationals and foreign investors to purchase and own properties, further enhancing its appeal. Occupancy rates for apartments have increased from 87.6% in 2023 to 91.6% in 2024, indicating strong demand for housing in this area.
Growth and Stability
Real estate experts predict that property prices in Dubai South will remain stable or trend positively as development continues. The vision for Al Maktoum International Airport as the world’s largest hub ensures long-term growth for the surrounding communities. This ongoing expansion presents lucrative opportunities for both residential and commercial investments.
Why Dubai South?
Dubai South’s affordability, location, and growth potential make it an excellent choice for renters, buyers, and investors. With plans for world-class infrastructure, proximity to a global transportation hub, and a range of housing options, it is poised to become one of the most dynamic areas in Dubai.
As the city around Al Maktoum International Airport continues to take shape, Dubai South offers an unmatched blend of lifestyle, convenience, and investment opportunities, ensuring it remains a top choice for real estate in Dubai.
