New Airport Plan To Drive Property Demand, Prices In Dubai South

UAE: New Airport Plan To Drive Property Demand, Prices In Dubai South

Are you interested to know about the Dubai increasing property rate? The upcoming developments in Dubai South may also significantly affect this situation.

The relocation of Dubai International Airport to Al Maktoum International Airport is expected to raise the demand for properties in the area, which may account for a 10-15% rise in property costs this year.

New Airport Plan To Drive Property Demand, Prices In Dubai South

Dubai South’s Growing Popularity

Dubai South is becoming a popular choice for homebuyers, especially for those interested in villas and townhouses. It ranked second in terms of demand during the first quarter of 2024. This trend is likely to continue as more people recognize the potential of the new airport and its effect on the surrounding areas.

Impact Of Al Maktoum International Airport

Relocation Of Operations

The gradual transfer of all operations from Dubai International (DXB) to the new Al Maktoum International Airport will take place over the next decade. The project, estimated to cost around Dh128 billion, will increase the airport’s passenger capacity to 260 million annually.

Real estate experts anticipate the new airport will drive demand for over 100,000 properties in Dubai South and nearby regions over the next ten years. This boost in demand could lead to a rise in property prices of up to 15% this year. An even more significant increase is expected as the airport’s expansion nears completion.

Creation Of A City Around The Airport

The Dubai government plans to build an entire city around the new airport, aiming to accommodate around one million people. This development will create a substantial demand for housing and attract both residents and businesses.

Impact On Property Prices

Svetlana Vasilieva, head of secondary sales at Metropolitan Homes, expects property prices in Dubai South to rise gradually within a year. This increase will be driven by anticipation of future growth. As the new passenger terminal at Al Maktoum International Airport nears completion, the appeal of the area is expected to grow even more.

UAE: New Airport Plan To Drive Property Demand, Prices In Dubai South

Economic Growth And New Job Opportunities

Logistics And Aviation Sectors

The expansion of the airport will lead to growth in the logistics and aviation sectors, creating more job opportunities and attracting residents to the area. As a result, Dubai South is expected to become a major business hub, further boosting the demand for residential properties.

Faisal Durrani, partner and head of research for MENA at Knight Frank, emphasizes the need for developers to speed up construction to accommodate the anticipated influx of residents around the Al Maktoum airport.

He also points out the importance of the recent reactivation of Palm Jebel Ali, indicating the growing prominence of southwestern Dubai as an economic center.

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Meeting The Growing Demand

Developer Plans And Initiatives

Paul Kelly, operations director at Allsopp & Allsopp Group, sees the need for hundreds of thousands of properties in Dubai South and nearby areas over the next ten years due to population growth. 

Developers with land in the area are already making plans, while others without land are considering their options.

Kelly predicts property prices in Dubai South and surrounding areas will rise over the next decade due to ongoing developments, infrastructure improvements, and entertainment venues. Market activity in these areas is expected to surge soon.

Improved Accessibility And Appeal

Road Infrastructure And Access

Suchit Odhrani, client manager at Betterhomes, notes that Dubai South’s improved road infrastructure and its distance from heavy traffic make it more accessible and appealing for families and individuals considering purchasing properties.

He also predicts the number of properties launched in Dubai South each year, currently around 2,000, will double as investors and individuals commuting from afar for work become more interested in relocating to the area.

Proximity To Abu Dhabi

Odhrani adds that Dubai South’s proximity to Abu Dhabi is an added benefit for residents commuting between the two cities. This advantage is especially useful for individuals working in one city and living in the other.

Growth Of The Hospitality Sector

The relocation to Al Maktoum International Airport will also have a positive impact on the hospitality sector. The demand for new hotels and serviced apartments will increase due to transit passengers and business travelers.

Rise In Property Prices

Anticipated Market Changes

As Dubai South evolves, real estate experts anticipate a rise in property prices in the area. The demand for properties will increase due to the growing population and the development of new infrastructure and businesses.

Faisal Durrani points out that Dubai’s current rate of home construction is insufficient to meet the anticipated demand. Developers need to accelerate construction plans to accommodate the growing population and housing needs.

Development Plans For Dubai South

New City Planning

The Dubai government plans to build an entire city around the new airport, which will include housing for a million people. This ambitious project will attract businesses and create job opportunities in various sectors, driving more people to settle in the area.

Vasilieva emphasizes the importance of the government’s vision for developing Dubai South into a major hub for business and residential activity. The new airport and city will bring significant growth to the region.

UAE: New Airport Plan To Drive Property Demand, Prices In Dubai South

Property Investment Opportunities

High Demand For Properties

Investors and potential homebuyers should consider the rising demand for properties in Dubai South. The area’s future development and the creation of a city around the new airport are expected to create a robust market for property investments.

The Future Of Dubai South

Economic And Social Impact

The relocation of the airport to Dubai South will have a profound impact on the region’s economy and society. The growth in the logistics and aviation sectors will create more job opportunities and attract businesses and residents to the area.

The new city planned around the airport will also provide housing, amenities, and infrastructure to support the growing population. This development will transform Dubai South into a thriving center of economic activity.


The relocation of the airport to Dubai South is set to drive significant growth in property demand and prices in the region. With many expecting a major increase in housing and development opportunities, it is a great time for potential buyers and investors to keep a close eye on this area.

You should stay informed about the latest news and developments to make the most of the changing landscape.

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