Dubai South real estate could see property prices increase by up to 20 per cent in near term as Al Maktoum International Airport drives interest
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The AED128 bn ($35 bn) expansion of Al Maktoum International Airport in Dubai South is fuelling a real estate boom that has major implications for the wider UAE economy, according to Betterhomes analysis.
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Property transactions in the area exceeded AED15 bn ($4.1 bn) in the first five months of 2025 and prices could increase by up to 20 per cent in the near term said analysts.
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Spanning 70 sq km, the new Al Maktoum Airport will feature five runways and 400 aircraft gates and is expected to accommodate more than 260 m passengers annually upon completion.
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More than just an enhancement to the aviation sector, however, the project is poised to drive growth across real estate, hospitality, and the broader economy.
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Investor interest in Dubai South is accelerating, driven by competitive pricing, strong rental yields, and ongoing infrastructure development, said Betterhomes.
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Quote from Louis Harding, CEO of Betterhomes:
“The development of Al Maktoum Airport is not just a milestone in aviation, but a catalyst for the next chapter of Dubai’s real estate growth. We’re already seeing the ripple effects in Dubai South. This is the early stage of a long‑term growth cycle.”
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Rental rates have risen 20 per cent year‑to‑date, with a sharp increase in both off‑plan and ready property sales.
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Betterhomes has also recorded more than 20 per cent monthly growth in buyer and tenant inquiries, while institutional capital is entering the market, most notably a $1 bn investment partnership between a major Abu Dhabi‑based asset manager and Brookfield.
Forecasts & Comparisons
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Property prices in Dubai South are forecast to rise by 15–20 per cent in the near term.
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Infrastructure enhancements, including the Dubai Metro Blue Line and Etihad Rail, will further strengthen demand, and a recent AED1 bn ($272 m) contract award for the airport’s second runway signals continued momentum.
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Average prices in surrounding areas remain up to 60 per cent lower than in prime districts like Downtown Dubai, offering attractive value.
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A similar growth pattern was seen following the launch of Terminal 3 at Dubai International Airport in 2005, when surrounding areas such as Dubai Marina and Al Barsha experienced substantial appreciation.
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Between the launch and early 2008, average sale prices had nearly doubled.
Long‑term Impact
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With demand surging and a long‑term development pipeline in motion, the neighbourhood is emerging as one of the UAE’s most promising real estate growth corridors.
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The $35 bn terminal expansion is set to create employment and housing opportunities for over one million people, with far‑reaching effects across multiple sectors.
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As job creation increases, population growth is expected to follow, driving greater demand for housing and supporting broader economic development.
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Surrounding areas are already experiencing a rise in transactions, property prices, rental rates and yields.
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The aviation sector alone is projected to contribute over 30 per cent to the emirate’s GDP by 2030.
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In 2023, Dubai Airports and the Emirates Group supported approximately 329,000 direct and indirect jobs.
