Investors in Dubai South and its vicinity are demanding higher rates for their properties due to the announcement of the relocation of Dubai Airport to Dubai South. Many sellers have raised their prices by up to 25 percent, causing some potential buyers to hold off on purchasing. The occupancy level in Dubai South is already high at over 70 percent, and with the airport development beginning, more people are expected to relocate to the area. The government’s announcement that all operations at Dubai International will be transferred to Al Maktoum International in Dubai South over the next few years has shifted market dynamics significantly.
As a result of the airport expansion announcement, sellers are postponing sales to capitalize on expected price increases, while buyers are looking for properties that promise long-term benefits from upcoming development and infrastructure enhancements. Angelika Egoschin, founder of Real Estate Blondies, stated that there has been a noticeable shift in investment strategy in Dubai South post-airport expansion announcement. Many investors are holding off on selling their properties in anticipation of higher property values in the future. Property owners in key areas like Dubai South, Mohamed bin Zayed Road, and Emirates Road are starting to ask for higher prices due to the anticipated increase in demand triggered by the airport relocation.
Farooq Syed, CEO of Springfield Properties, noted a discernible trend among investors choosing to retain their properties around Dubai South, expecting significant property value appreciation. The area is expected to undergo a remarkable transformation, prompting clients to strategically delay sales to leverage future gains. Sellers are positioning themselves strategically to benefit from the spike in demand that infrastructural milestones typically generate, with a surge of interest in off-plan properties. With the expected increase in demand and infrastructure enhancements in Dubai South, property owners in key zones are revising their pricing upwards, with short-term increases of approximately 10 percent and long-term increases of 20-30 percent anticipated.
In conclusion, the announcement of the relocation of Dubai Airport to Dubai South has significantly impacted the real estate market in the area. Many investors are holding off on selling their properties in anticipation of higher value in the future, while sellers have raised prices by up to 25 percent. With the expected increase in demand and infrastructure enhancements in Dubai South, property owners are strategically positioning themselves to benefit from future gains. This shift in market dynamics highlights the potential for significant property value appreciation in the area due to the airport relocation and the development of an entire city around the new airport. It is essential for investors and buyers to stay informed about these developments to make informed decisions in the Dubai South real estate market.
