AED 128B Al Maktoum Project Fuels Real Estate Boom in Dubai South

2025-06-16 04:03:11

(MENAFN- Betterhomes) Betterhomes has released new analysis highlighting the impact of the AED 128 billion ($35 billion) expansion of Al Maktoum International Airport on Dubai South, with major implications for real estate, logistics, and the wider UAE economy.

Investor interest in Dubai South is accelerating, driven by competitive pricing, strong rental yields, and ongoing infrastructure development. Property transactions in the area have already exceeded AED 15 billion in the first five months of 2025.

“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,” said Louis Harding, CEO of Betterhomes. “We’re already seeing the ripple effects in Dubai South. This is the early stage of a long-term growth cycle, and Betterhomes is well-positioned to guide both investors and end-users through it.”

Rental rates have risen 20% year-to-date, with a sharp increase in both off-plan and ready property sales. Betterhomes has also recorded over 20% monthly growth in buyer and tenant inquiries, while institutional capital is entering the market, most notably a $1 billion investment partnership between a major Abu Dhabi-based asset manager and Brookfield.

Property prices in Dubai South are forecast to rise by 15–20% in the near term. Infrastructure enhancements, including the Dubai Metro Blue Line and Etihad Rail, will further strengthen demand, and a recent AED 1 billion contract award for the airport’s second runway signals continued momentum. Average prices in surrounding areas remain up to 60% lower than in prime districts like Downtown Dubai, offering attractive value.

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. Between the launch and early 2008, average sale prices had nearly doubled.

With demand surging and a long-term development pipeline in motion, Dubai South is emerging as one of the UAE’s most promising real estate growth corridors.

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