Dubai does not shy away from ambitious initiatives that push the envelope. With the major Al Maktoum International Airport expansion, the city’s innovative spirit is taking off once more. This mega project is going to turn it into the largest airport in the world and is set to trigger a real estate boom in Dubai South.
The main feature of this transformation, Al Maktoum International Airport’s ambitious expansion, will have an impressive 260 million passengers per year capacity, according to Dubai’s ruler HH Sheikh Mohammed bin Rashid Al Maktoum. It is projected that it will take around 10 years for the first phase of Dubai’s new airport to be finished, which would allow the airport to handle 150 million people a year. Moreover, when the building is completed, all activities will transfer from Dubai International to Al Maktoum International. When completed, the new airport will be five times larger than Dubai International.
This expansion will solidify Dubai’s status as an international aviation hub and ignite a real estate boom in Dubai South, attracting savvy investors and homeowners.
Paul Griffiths, CEO of Dubai Airports, stated that on the Dubai Airports, “The growth of Dubai has always been hand in hand with the growth of its aviation infrastructure and today we see another bold step on that journey. The announcement of phase two of Dubai World Central – Al Maktoum International Airport’s (DWC) expansion, representing a substantial investment of AED 128 billion, marks the start of a huge investment of resources by our many stakeholders in designing and building a state-of-the-art airport that will provide a quick, convenient, and high quality 21st century experience for our customers. This further solidifies Dubai’s position as a leading aviation hub on the world stage.”
Dubai South, the Real Estate Rising Star
Dubai South, a 145 square kilometer metropolis around Al Maktoum International Airport, is set to become the hub of real estate development, offering a blend of industrial, commercial, and residential zones just 30 minutes from Downtown Dubai.
With in excess of $272 million (AED 1 billion) in land transactions recorded in the region around the new Al Maktoum International Airport from January up until the end of April, 2024 (according to the most recent data from the Dubai Land Department), the airport is expected to have a significant impact on real estate in Dubai South, as well as the local residential zones, industrial and free zones, and logistics centers to which it connects.
According to the Khaleej Times, Property prices in Dubai South and its neighboring areas will see a jump – up to 15 per cent – this year as the relocation of the Dubai International airport is likely to boost demand. Real estate industry executives predicted that prices would rise faster when the airport reaches its completion, with demand reaching over 100,000 properties in Dubai South and its vicinity over the next decade.
Experts predict increased demand for housing in Dubai South as the airport development progresses. Here’s what to expect:
New Jobs Drive Demand for Housing
Al Maktoum International Airport’s construction is projected to create housing demand for over a million residents and workers in Dubai South, attracting professionals and increasing the need for hotels and serviced apartments. The development is also predicted to draw in more leisure and business passengers, as it becomes a leading global travel and aviation hub.
Developers like Ellington Properties are building numerous residential projects, including modern apartments and luxurious villas, to meet the diverse needs of the expanding population and workforce.
Commercial Real Estate Rapid Growth
Demand for commercial real estate, including offices, retail stores, and industrial spaces, will rise with the airport’s growth, attracting companies to Dubai South and boosting the commercial real estate market.
Ellington Properties offers residential projects to support the commercial real estate boom, strategically located near the airport and transit hubs.
Modern Infrastructure Improves Connectivity
The airport expansion will drive infrastructural development, enhancing Dubai South’s connectivity through improved roads and public transit.
The airport is accessible via Dubai’s three major roads: Sheikh Zayed Road, Sheikh Mohammed bin Zayed Road, and Emirates Road, which connect it to Dubai and the other six Emirates that make up the UAE. The whole network of Dubai’s metro lines will be extended to the new airport location.
The airport’s location near Jebel Ali Port and in Dubai South allows easy access to air, sea, and land transportation options. They are set to receive a major renovation to facilitate the building of the UAE’s share of a pan-GCC rail link, which would eventually connect Oman and Kuwait.
Infrastructure improvements will raise living standards and make Dubai South a sought-after residential and business center with easy access to corporate areas, retail centers, and leisure attractions.
A Golden Chance to Invest in Dubai South
Smart investors recognize the potential for large profits in Dubai South’s evolving real estate market:
Early Mover Advantage
Dubai South offers promising investment opportunities with the new terminal expected to boost employment and real estate demand. Those who get in early stand to gain the most from this sustainable growth trend.
Early investors can acquire properties at competitive prices and benefit from significant appreciation. The airport expansion will boost retail, logistics, tourism, and construction industries, creating jobs and increasing demand for real estate. Economic growth from the expansion will further enhance the real estate market.
Options for Diverse Investments
Dubai South offers diverse investment options, including mixed-use complexes, commercial buildings, and luxurious residences. The airport expansion enhances Dubai Expo City and Dubai South’s appeal to international investors, making it a top destination due to its strategic location, affordable pricing, and market potential.
Rental Yield Potential
The influx of companies and professionals to Dubai South will boost the rental market, making properties appealing for investors seeking steady cash flow.
The surge of companies and highly qualified people to Dubai South is also expected to boost the rental market. Expected high rental returns make properties in the region appealing choices for investors looking for steady cash flow and high yields.
Investors in Dubai South can choose from villas, townhouses, and apartments for rental income, with apartments being ideal for investors as they offer great potential for vacation or short-term rentals.
Prospects for Long-term Growth
The airport expansion is just the beginning of Dubai South’s transformation, with the city’s master plan including eight industry-specific districts for long-term growth.
Analysts expect property prices in Dubai South to increase consistently, driven by neighborhood growth, infrastructure upgrades, and new entertainment options.
Investing in Dubai South now means gaining a footing in a fast changing neighborhood that is expected to develop into a center of luxury living, business, and innovation.
Ellington Properties: Leading the Way in Shaping Dubai South’s Real Estate Landscape
Ellington Properties is set to leverage the opportunities presented by the expansion of Al Maktoum International Airport and the interest it will bring to the Dubai South area.
A growing portfolio of luxurious homes, contemporary villas, and innovative apartments will cater to the growing demand in Dubai South.
