The property market in Dubai South and its neighbouring areas is expected to see a significant increase in prices this year. Experts predict a rise of up to 15 per cent as the relocation of the Dubai International airport is likely to boost demand. With the gradual transfer of operations to the new Al Maktoum International airport over the next 10 years, the real estate industry anticipates a surge in demand for over 100,000 properties in the area.
Dubai South is set to become a major business hub with plans to build an entire city around the airport to accommodate a million people. Currently, Dubai South is already one of the most sought-after areas for buying villas and townhouses, ranking second in demand in the first quarter of 2024. The recent developments, including Expo 2020 Dubai, have attracted multinational corporations to set up operations in Dubai South, further driving the demand for residential properties.
Svetlana Vasilieva, head of secondary sales at Metropolitan Homes, expects a gradual increase in property prices within a year, potentially reaching 10-15 per cent, driven by the anticipation of future growth. She also mentioned that a more significant price increase is likely closer to the completion of the new passenger terminal at Al Maktoum International Airport, as the full impact of the airport’s expansion becomes more tangible.
Faisal Durrani, partner and head of research for Mena at Knight Frank, emphasized the need for developers to accelerate construction plans to house the expected influx of residents around the Al Maktoum airport. With projections for a million residents in the immediate vicinity, there is a demand-supply imbalance that is likely to drive prices upwards in the medium to long term. The reactivation of the Palm Jebel Ali further highlights the growing prominence of south-western Dubai as a focal point for economic activity.
Paul Kelly, operations director of Allsopp & Allsopp Group, forecasts a need for hundreds of thousands of properties in Dubai South and surrounding areas over the next decade to accommodate the population growth. He expects property prices to rise in the area over the next ten years, with all the developments, infrastructure, and entertainment venues contributing to the upward trajectory. The improved road infrastructure and distance from heavy traffic make Dubai South an attractive location for families and individuals looking to purchase properties.
Suchit Odhrani, client manager at Betterhomes, anticipates a surge in demand for new houses in Dubai South due to its proximity to Abu Dhabi and improved road connectivity. With approximately 2,000 units being launched in Dubai South per year, this number is expected to double as investors and individuals commuting from afar show interest in relocating to the area. Cherif Sleiman, chief revenue officer at Property Finder, highlighted the strategic location of Dubai South near major transportation links and attractions, making it an attractive option for renters and buyers alike. The ongoing development in Dubai South is expected to boost interest among property seekers and lead to a new city centre equipped with cutting-edge planning and infrastructure.
