AED 128B Al Maktoum Project Ignites Dubai South Real Estate Boom

The AED 128 billion ($35 billion) expansion of Al Maktoum International Airport is reshaping the landscape of Dubai South, according to a new analysis by Betterhomes. The project is expected to have far-reaching effects not just on the local real estate and logistics sectors but also on the broader UAE economy.

Investor Momentum Picks Up Pace

Dubai South is increasingly drawing the attention of investors, thanks to its competitive property prices, attractive rental yields, and rapidly improving infrastructure. In just the first five months of 2025, real estate transactions in the area have surpassed AED 15 billion, reflecting a sharp upswing in activity and confidence.

“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,” said Louis Harding, CEO of Betterhomes. “We’re already seeing the ripple effects in Dubai South. This is the early stage of a long-term growth cycle, and Betterhomes is well-positioned to guide both investors and end-users through it.”

Sharp Rise in Demand and Prices

Rental rates in Dubai South have surged by 20% so far this year, as demand intensifies across both off-plan and ready properties. Betterhomes reports a consistent monthly increase of more than 20% in buyer and tenant inquiries. Adding to this momentum is a landmark $1 billion investment by a leading Abu Dhabi asset manager in partnership with Brookfield, marking a significant inflow of institutional capital.

Echoes of Past Growth Patterns

This trend mirrors the boom seen after the opening of Terminal 3 at Dubai International Airport in 2005. At that time, neighbourhoods such as Dubai Marina and Al Barsha experienced rapid appreciation, with average property prices nearly doubling by early 2008. Dubai South now appears to be following a similar growth trajectory.

Outlook: A Rising Real Estate Hotspot

With demand showing no signs of slowing and major infrastructure upgrades underway, Dubai South is positioning itself as one of the most dynamic real estate hubs in the UAE. Property values in the area are projected to climb by 15–20% in the short term. Projects like the Dubai Metro Blue Line and Etihad Rail are expected to boost connectivity, while the recent AED 1 billion contract for a second runway at Al Maktoum Airport reinforces the area's upward momentum. Despite this growth, property prices here still remain up to 60% lower than those in core districts like Downtown Dubai, making Dubai South an increasingly attractive option for investors and end-users alike.