Why Dubai around airport in the south is selling out fast
 Affordable rents, location: Why Dubai’s new city around airport in the south is selling out fast

Affordable rents, location: Why Dubai’s new city around airport in the south is selling out fast

Dubai is building an entire city in its south as its Dh128-billion passenger terminal at Al Maktoum International Airport takes shape. Dubai South is now among the top five areas in demand for new developments across the emirate, property experts said.

As he announced plans for what will be the largest airport in the world, Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, said the area would witness housing demand for a million people.

Data from real estate portal Property Finder shows that buy listings for Dubai South – which is next to the new airport – grew three times faster than the overall market between Q2 and Q3 of 2024, “reflecting its rising popularity”.

“The share of users on the Property Finder platform looking for properties in this area surged from nine per cent in January to 16 per cent by mid-year in 2024 – following Sheikh Mohammed’s announcement … to transition operations from Dubai International Airport to Al Maktoum International Airport,” Cherif Sleiman, chief revenue officer at the company, told Khaleej Times.

The property portal has seen “consistent increases” across supply and demand, with growth prospects continuing to look strong. “In 2024 alone, we added 32 new developments from the area to our Property Finder New Developments catalogue. Interest in new projects has also grown by 15 per cent month on month, showing sustained buyer enthusiasm.”

The company has seen average price for off-plan villas increasing by 43 per cent, and those for off-plan apartments rising by 12 per cent in 2024.

According to real estate consultancy Knight Frank, Dubai South is considered a “strategic hub” currently offering residential and logistics opportunities such as free zones, business parks and residential master plans.

“Dubai South is rapidly gaining popularity as a residential destination due to its affordability, convenient location near Al Maktoum International Airport, and ongoing development,” said Shehzad Jamal, partner at the consultancy. “This is reflected in the high occupancy rates of its residential communities. Based on REIDIN, occupancy for apartments in 2023 was 87.6 per cent, increasing to 91.6 per cent by 2024.”

Average rents

Annual rents across the neighbourhood are “highly competitive” when compared to overall market average, according to Property Finder.

  • Studios: Dh42,000
  • One-bedroom apartments: Dh59,999
  • Two-bedroom apartments: Dh80,000

Knight Frank gave average rents of villas and townhouses based on rental listings and transactions outlined across Property Monitor and Bayut over the past six months:

  • 2-bedroom: Dh92,000
  • 3-bedroom: Dh110,000
  • 4-Bedroom and larger: Dh145,000-220,000

Property prices

Sleiman said diverse options across neighbourhoods are attracting both seasoned investors and first-time buyers. “Around 31 per cent of properties are priced below Dh1 million, making it an accessible option, while 40 per cent are in the Dh1-3 million range, catering to mid-range buyers. For those seeking high-value opportunities, 30 per cent of properties are above Dh3 million.”

Jamal explained that the area has a freehold ownership structure for residential properties, enabling both UAE nationals and foreign investors to purchase and own homes or land. “This has contributed to the area’s appeal among a diverse range of buyers.

Property Finder listed average sales prices in the area:

  • Studios: Dh600,000
  • One-bedroom apartment: Dh959,999
  • Two-bedroom apartment: Dh2,358,940
  • Villas: Dh1,922,500

Knight Frank expects real estate prices to remain stable or “trend positively”.

Sleiman added: “With the vision for Al Maktoum International Airport to become the world’s largest hub in terms of capacity, Dubai South communities are likely to see even greater demand for residential and commercial spaces.”

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Source: Khaleej Times

23rd January, 2025

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