The massive expansion project at Al Maktoum International Airport seemed to have set off a real estate boom in the surrounding areas, pushing up property prices upward, with industry projections indicating a potential price rise of up to 15 percent in Dubai South and neighbouring areas this year alone.
Industry insiders predicted a massive demand for properties – both housing and commercial spaces – pegging the numbers at upwards of 100,000 properties in Dubai South and its vicinities over the next decade, leading to a further surge in prices and creating a lucrative market for investors.
“We are seeing a tremendous 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 attracting a significant influx of businesses and residents, driving up demand for housing and commercial spaces,” he said.
Syed said Al Maktoum International Airport is not just an aviation project; it is a major economic engine that will redefine Dubai’s real estate landscape.
Senior executives at other leading real estate firms and proptechs also echoed Syed’s views and said their firms are also seeing a surge in enquiries for both residential and commercial units in the areas surrounding the airport.
The $35 billion passenger terminal at Al Maktoum International Airport, spread across 70 square kilometers, is designed to handle 260 million passengers annually, featuring 400 aircraft gates, five parallel runways, and at least 100,000 square meters of retail space, employing 10,000 people.
This development, expected to be a cornerstone of Dubai’s economy, besides being a demand booster for housing and commercial properties in the area.
Several residential projects springing up in the area
Industry insiders said a slew of residential projects by reputed developers are already springing up in the area to cater to the anticipated influx of businesses, employees and real estate investors.
Master-planned communities like Emaar South, DAMAC’s new Riverside community and Dubai South Properties’ Pulse Villas are among the prime projects already coming up or announced.
While Emaar South, covering approximately 7 million square metres, features over 15,000 residences, retail spaces, office buildings, and recreational facilities, the European-style influenced DAMAC Riverside community is set to offer 1,900 townhouses.
Pulse Villas, set for completion this year, offers villas and townhouses in the off-plan complex.
Emaar has also announced new developments such as ‘The Heights’ and ‘Expo Valley’ in the area, anticipating the massive demand upsurge.
Leading developers are also offering top-tier amenities, including schools, hospitals, mosques, and retail areas to make their projects more attractive to both end users and investors.
Airport expansion to boost commercial real estate, infra development in the area
Industry players said the commercial real estate sector is also experiencing a boom, with the new airport driving up development of business hubs and logistics centres.
“The airport’s expansion is creating a ripple effect across the commercial real estate sector. Businesses are keen to establish a presence in Dubai South, which is rapidly becoming a major business hub with state-of-the-art facilities and excellent connectivity,” the Springfield Properties’s chief executive said.
“Companies are flocking to Dubai South, drawn by the strategic location and the promise of modern infrastructure. This has led to a significant increase in the construction of office buildings, warehouses, and retail spaces,” he said.
Industry experts said the airport expansion has also necessitated vast improvements in transportation infrastructure in and around the area, with new roads, highways, and public transit links being constructed to connect the airport with the rest of Dubai.
Additionally, community amenities such as schools, hospitals, and shopping centres are being developed to support the growing population.
“Our comprehensive market analysis shows a substantial increase in property values in Dubai South.
“We anticipate this trend will persist as the airport project progresses, reinforcing the area’s position as a prime investment opportunity,” Syed, considered a sector expert, leading a team of 150 realtors, said.
Rapid developments to throw up environmental challenges
Industry experts, while being optimistic about the outlook for the sector in the wake of the massive airport expansion project, however, cautioned that the rapid pace of development could lead to environmental concerns and potential market saturation.
They also anticipated a demand-supply imbalance, with developers announcing only a limited pipeline of projects so far, leading to sustained upward pressure on prices, making affordability a critical issue.
“Developers will need to accelerate construction plans to meet the housing needs of the projected influx of residents,” a senior executive at a Dubai-headquartered AI-based proptech said.
Syed said while the growth prospects are exciting, it is essential to manage development sustainably to avoid potential pitfalls such as market saturation and environmental impact.
“The success of airport regions like Paris’ Charles de Gaulle and Amsterdam’s Schiphol illustrates the potential for Al Maktoum International Airport to transform Dubai’s real estate market.
“These airports have evolved into integral parts of their respective cities, driving economic growth and real estate development,” he said, adding that the massive airport expansion project could be a game-changer for Dubai’s real estate sector.
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