Real estate activity in Dubai South has increased sharply following the announcement of the Al Maktoum International Airport expansion last year, according to a report by Betterhomes.
The large-scale infrastructure project is driving investor interest, pushing up property prices, rental rates, and transaction volumes across the area.
Rising property transactions
Transaction volumes in Dubai South, Expo City, and Dubai Investment Park (DIP) surged after the government announced a Dhs128 billion expansion plan for Al Maktoum Airport in April 2024.
According to Betterhomes Research, total property sales in Dubai South reached Dhs16.1 billion in 2024. Within just five months of 2025, the area recorded over Dhs15 billion in new transactions.
Off-plan projects in Dubai South and Expo City are seeing accelerated demand, with Betterhomes noting a more than 20% monthly increase in investor leads for Dubai South alone.
Prices and rental gains
Average property prices in Dubai South have nearly doubled since 2022, with a year-on-year increase of around 30%. Despite the rise, prices remain roughly 60% lower than prime areas like Downtown Dubai and Business Bay.
Rental prices have also climbed significantly. In 2025, average annual rents across communities in the south rose by 20%, with Dubai South’s villa and apartment segments showing strong performance. Rental yields in the area remain among the highest in the city, ranging between 7% and 10%.
Infrastructure and investment
The expansion of Al Maktoum Airport is expected to create housing and employment opportunities for over one million people. The government has already awarded key contracts, including a Dhs1 billion agreement for a second runway.
In addition, international institutional investment is helping fuel regional growth. A Dhs3.67 billion (USD 1 billion) investment has been committed by an Abu Dhabi-based fund and Brookfield Asset Management, which oversees over USD 1 trillion in global assets. Brookfield has also entered a joint venture with Dubai Holding to redevelop La Mer North into a luxury residential community.
Outlook for 2025
Looking ahead, analysts expect property prices in Dubai South to rise by another 15% to 20% as construction progresses and connectivity improves. Planned infrastructure upgrades such as the Dubai Metro Blue Line and Etihad Rail are expected to enhance accessibility to the area and support future demand.
While the airport expansion is a long-term project, its early effects are already visible in Dubai South’s evolving real estate landscape.
tanvir@dubainewsweek.com
