Dubai South: Dubai Property Next Big Boom Driven by Dh128 Billion Al Maktoum Airport Upgrade

The property market in Dubai is experiencing another strong surge and this time around Dubai South is the center of attention. With the record Dh128 billion ($35 billion) overhaul of Al Maktoum International Airport, the area is emerging as a major growth hub, Attracts both local as well as foreign investors.

Property Prices Will Rise by 15-20% in Dubai South

The latest data show that Dubai South property prices will increase by 15 to 20 per cent in the near term, making it one of the most profitable real estate corridors of the UAE. This growth is supported by explosive demand, low property prices, and game-changing infrastructure projects.

Already, Dubai South property deals have reached over Dh15 billion in the first half of 2025 alone a clear indication of Building investor confidence And with the airport expansion to generate over one million new jobs and housing needs, growth potential is just starting.

Why Dubai South Is the New Investment Hotspot

Dubai South offers a very good combination of affordability, excellent rental yields, and long-term appreciation in value of the capital. Compared to prime locations like Downtown Dubai or Business Bay where properties are priced between Dh2,000 and Dh2,500 per sq. ft Dubai South offers the properties at nearly 60% less.

Dubai Industrial City: average price of Dh750/sq. ft

Dubai Investment Park: average price of Dh850/sq. ft

This price difference makes Dubai South highly attractive to both first-time homebuyers and seasoned investors who are seeking good returns and value for money.

Increased Rental Charges and Buyer Demand

Dubai South's rental market also is heating up. Rental rates are 20% higher so far this year because of increased demand for ready and off-plan apartments. According to Betterhomes, buyer and tenant inquiries have grown over 20% on a monthly basis, which shows that the location is becoming increasingly popular among residents and investors.

Furthermore, institutional capital is flooding into the area, with a major $1 billion investment partnership recently formed between a leading Abu Dhabi-based asset manager and international real estate firm Brookfield. This is an serious vote of confidence in the future of Dubai South.

Infrastructure: The Backbone of Long-Term Growth

The Al Maktoum Airport expansion isn't an isolated project it's part of a larger infrastructure plan that includes

Dubai Metro Blue Line to Al Maktoum Airport

Etihad Rail with a dedicated stop at the airport

Continued government investment through a Dh1 billion agreement provided for the second runway of the airport

All these developments will largely boost regional and international connectivity, making Dubai South a residential hub as well as a logistics and aviation giant in the world.

The Ripple Effect: Beyond Real Estate

The real estate surge  in Dubai South is creating ripple effects across various sectors. The aviation sector alone is expected to contribute over 30% to Dubai’s GDP by 2030, underlining the scale and impact of the airport expansion.

In 2023, the Emirates Group and Dubai Airports indirectly and directly helped sustain approximately 329,000 jobs. When up to 260 million passengers annually are going to welcome the new terminal, the economic multiplier impact on retail, logistics, hospitality, and services will be gigantic.

A Look Back to Predict the Future

History suggests the potential of Dubai South. When Dubai International Airport's Terminal 3 was opened in 2005, areas like Dubai Marina and Al Barsha experienced a housing price boom. Sale prices in the two communities in less than three years almost doubled.

The same trend is happening in Dubai South. Where demand, infrastructure, and capital meet, experts predict an enduring cycle of growth, especially for investors who enter early and enter the market at the current moment.