Property prices in Dubai South are expected to increase by 15 to 20 percent in the coming period, as Al Maktoum Airport’s AED128 billion ($35 billion) upgrade to become the world’s largest drives demand across real estate, logistics and hospitality.
Since the announcement of the expansion, Dubai South has experienced a notable surge in real estate activity. Prices for both off-plan and completed properties have risen, according to the latest analysis by Betterhomes. With the government now actively awarding contracts and construction well underway, further price growth is anticipated in 2025.
Dubai South rental rates rise 20 percent in 2025
Since the announcement of the airport expansion, property prices in Dubai South have risen by an average of 25 percent. In comparison, more mature areas such as Business Bay have remained relatively flat, while Downtown Dubai has recorded an increase of 11 percent.
The report also revealed that total sales in Dubai South reached AED16.1 billion in 2024, and in just the first five months of 2025, the area has already surpassed AED15 billion, indicating continued momentum.
Rental rates have also increased, with average annual rents up by 20 percent in 2025. Betterhomes has also observed a similar trend, reporting more than 20 percent monthly growth in leads and rising demand across segments.
Upcoming infrastructure developments to boost area’s appeal
Currently, Dubai Industrial City has an average sale price of AED750 per square foot, while Dubai Investment Park is priced at AED850 per square foot. These figures are approximately 60 percent lower than those in prime areas such as Downtown Dubai and Business Bay, where prices typically range between AED2,000 and AED2,500 per square foot. This substantial pricing gap positions Dubai South as an attractive opportunity for both investors and end users.
The area’s appeal is further supported by upcoming infrastructure developments, including the Dubai Metro Blue Line, which will connect to Al Maktoum Airport, and the Etihad Rail network, which lists the airport as a designated stop. These projects are expected to significantly improve regional connectivity, thereby driving further demand and supporting capital appreciation in the area.
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Expansion to create housing opportunities for over 1 million people
In 2005, the launch of Terminal 3 at Dubai International Airport triggered rapid growth in areas like Dubai Marina, JLT and Al Barsha.
Back then, apartment prices ranged from AED560 to AED1,000 per square foot, with villas averaging AED1,500. By early 2008, as Terminal 3 neared completion, the average sale prices had climbed to AED1,211 per square foot, nearly doubling in just a few years.
Therefore, the Al Maktoum Airport expansion is more than just an enhancement to the aviation sector; This project is poised to drive growth across real estate, hospitality and the broader economy. Spanning 70 square kilometers, the new Al Maktoum Airport will feature 5 runways and 400 aircraft gates and is expected to accommodate over 260 million passengers annually upon completion.
The terminal expansion in Dubai South 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 percent to Dubai’s GDP by 2030.
In 2023, Dubai Airports and the Emirates Group supported approximately 329,000 direct and indirect jobs. The government has already begun awarding major contracts, including a recent AED1 billion contract for the airport’s second runway, demonstrating a strong commitment and steady progress on the project.
