The AED128bn ($35bn) 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.
Property transactions in the area exceeded AED15bn ($4.1bn) in the first five months of 2025 and prices could increase by up to 20 per cent in the near term said analysts.
Spanning 70 sq km, the new Al Maktoum Airport will feature five runways and 400 aircraft gates and is expected to accommodate more than 260m passengers annually upon completion.
Al Maktoum International Airport drives Dubai South real estate growth
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.
Investor interest in Dubai South is accelerating, driven by competitive pricing, strong rental yields, and ongoing infrastructure development, said Betterhomes.
Louis Harding, CEO of Betterhomes, said: “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.”
Rental rates have risen 20 per cent year-to-date, with a sharp increase in both off-plan and ready property sales.
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 $1bn investment partnership between a major Abu Dhabi-based asset manager and Brookfield.
Property prices in Dubai South are forecast to rise by 15–20 per cent in the near term. Infrastructure enhancements, including the Dubai Metro Blue Line and Etihad Rail, will further strengthen demand, and a recent AED1bn ($272m) contract award for the airport’s second runway signals continued momentum.
Average prices in surrounding areas remain up to 60 per cent 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, the neighbourhood is emerging as one of the UAE’s most promising real estate growth corridors.
The $35bn terminal expansion is set to create employment and housing opportunities for over one million people, with far-reaching effects across multiple sectors.
As job creation increases, population growth is expected to follow, driving greater demand for housing and supporting broader economic development.
Surrounding areas are already experiencing a rise in transactions, property prices, rental rates and yields. The aviation sector alone is projected to contribute over 30 per cent to the emirate’s GDP by 2030.
In 2023, Dubai Airports and the Emirates Group supported approximately 329,000 direct and indirect jobs.
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