Industry insiders anticipate a massive demand for both residential and commercial properties, estimating over 100,000 properties in the airport vicinity within the next decade, which is expected to further drive up prices.
The massive expansion project at Al Maktoum International Airport has triggered a real estate boom in the surrounding areas, driving property prices upward. Industry projections indicate a potential price increase of up to 15 percent in Dubai South and neighboring areas this year alone.
Industry insiders predict a substantial demand for both residential and commercial properties, estimating the numbers to exceed 100,000 properties in Dubai South and its surrounding areas over the next decade. This trend is expected to lead to further price surges, creating a lucrative market for investors.
“We are witnessing a significant surge in demand for residential properties in Dubai South,” Farooq Syed, CEO of Dubai-based Springfield Properties, told Arabian Business.
“The airport’s expansion is drawing a substantial number of businesses and residents, increasing the demand for housing and commercial spaces,” he said.
Syed stated that Al Maktoum International Airport is more than an aviation project; it’s a significant economic driver set to transform Dubai’s real estate market.
Senior executives from other prominent real estate firms and proptech companies agreed with Syed, noting that they, too, are experiencing a rise in enquiries for residential and commercial properties near the airport.
The $35 billion passenger terminal at Al Maktoum International Airport covers 70 square kilometers and is designed to handle 260 million passengers annually. It features 400 aircraft gates, five parallel runways, and at least 100,000 square meters of retail space, employing 10,000 people.
This development is anticipated to be a cornerstone of Dubai’s economy, boosting demand for housing and commercial properties in the area.
Several residential projects springing up in the area
Industry insiders reported that numerous residential projects by reputable developers are emerging in the area to accommodate the expected influx of businesses, employees, and real estate investors.
Master-planned communities such as Emaar South, DAMAC’s Riverside community, and Dubai South Properties’ Pulse Villas are among the prominent projects either under construction or announced.
Emaar South, sprawling across approximately 7 million square meters, encompasses over 15,000 residences, retail spaces, office buildings, and recreational facilities. DAMAC’s Riverside community, influenced by European style, will feature 1,900 townhouses.
Pulse Villas, slated for completion this year, offers villas and townhouses within the off-plan complex.
Emaar has also unveiled new developments like ‘The Heights’ and ‘Expo Valley’ in the area, in anticipation of significant demand growth.
Leading developers are enhancing their projects with top-tier amenities such as schools, hospitals, mosques, and retail areas to attract both end users and investors alike.
Airport expansion to boost commercial real estate, infra development in the area
Industry players noted that the commercial real estate sector is flourishing, propelled by the expansion of the new airport, which is driving the development of business hubs and logistics centers.
“The airport’s expansion is causing a ripple effect throughout the commercial real estate sector. Businesses are eager to establish themselves in Dubai South, which is quickly emerging as a major business hub with cutting-edge facilities and excellent connectivity,” stated Springfield Properties’s CEO.
“Companies are flocking to Dubai South due to its strategic location and modern infrastructure prospects. This surge has resulted in a notable rise in the construction of office buildings, warehouses, and retail spaces,” he added.
Experts in the industry highlighted that the airport expansion has also necessitated substantial improvements in transportation infrastructure in and around the area, including the construction of new roads, highways, and public transit links to connect the airport with the rest of Dubai.
Moreover, amenities such as schools, hospitals, and shopping centers are being developed to cater to the expanding population.
“Our comprehensive market analysis reveals a significant increase in property values in Dubai South.
“We expect this trend to continue as the airport project advances, solidifying the area’s standing as a prime investment opportunity,” noted Syed, recognized as a sector expert, leading a team of 150 real estate professionals
Rapid developments to throw up environmental challenges
Industry experts, despite their optimism about the sector’s outlook following the extensive airport expansion project, warned of potential environmental concerns and market saturation due to rapid development.
They also predicted a mismatch between supply and demand, as developers have announced a limited number of projects so far, which could keep prices high and affordability a pressing issue.
“Ahead of the projected increase in residents, developers must accelerate construction plans to meet housing needs,” noted a senior executive at a Dubai-based AI-driven proptech firm.
While growth prospects are promising, Syed emphasized the importance of sustainable development to mitigate risks such as market saturation and environmental impact.
“The success stories of airport-driven regions like Paris’ Charles de Gaulle and Amsterdam’s Schiphol highlight Al Maktoum International Airport’s potential to reshape Dubai’s real estate market.
“These airports have become integral parts of their cities, driving economic growth and real estate development,” he added, suggesting the airport expansion project could revolutionize Dubai’s real estate sector.
