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Why Dubai's New City Near The Airport Is A Big Hit

  • Publish date: Wednesday، 22 January 2025
Why Dubai's New City Near The Airport Is A Big Hit

Dubai is building an exciting new city in its southern region, centered around Al Maktoum International Airport, which is set to become the world’s largest passenger terminal. This ambitious AED 128-billion project is driving massive interest in Dubai South, now one of the top five most in-demand areas for new developments, according to property experts.

Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, envisions this area as a thriving hub, accommodating housing demand for over a million people. This bold vision is quickly turning into reality, with real estate activity booming.

Rising Popularity of Dubai South

Real estate data from Property Finder highlights Dubai South's skyrocketing popularity. Between Q2 and Q3 of 2024, buy listings in the area grew three times faster than the broader Dubai market. In 2024 alone, 32 new developments were added to the Property Finder catalog, reflecting sustained interest from buyers.

The growing demand is also evident in property prices. Off-plan villas in Dubai South have seen a 43% increase in average price, while off-plan apartments have risen by 12% this year. This momentum shows no signs of slowing.

Why Dubai's New City Near The Airport Is A Big Hit

Strategic Location and Affordable Living

Dubai South is much more than an up-and-coming residential destination—it’s a strategic hub offering residential, business, and logistics opportunities. With its proximity to Al Maktoum International Airport, free zones, and business parks, it appeals to both residents and investors.

According to Shehzad Jamal, partner at real estate consultancy Knight Frank, the area is thriving due to its affordability and strategic location. Residential occupancy rates climbed from 87.6% in 2023 to 91.6% in 2024, a clear indicator of its appeal.

Competitive Rents

Renting in Dubai South is highly affordable compared to the citywide average. Here’s what you can expect:

  • Studios: AED 42,000 per year
  • One-bedroom apartments: AED 59,999 per year
  • Two-bedroom apartments: AED 80,000 per year

Villas and townhouses also offer competitive rental options:

  • 2-bedroom villas: AED 92,000 per year
  • 3-bedroom villas: AED 110,000 per year
  • 4-bedroom villas: AED 145,000–220,000 per year

Why Dubai's New City Near The Airport Is A Big Hit

Property Prices and Ownership

Dubai South caters to a wide range of buyers, from seasoned investors to first-time homeowners. Approximately 31% of properties are priced below AED 1 million, making them accessible to many.

Average sales prices include:

  • Studios: AED 600,000
  • One-bedroom apartments: AED 959,999
  • Two-bedroom apartments: AED 2,358,940
  • Villas: AED 1,922,500

With a freehold ownership structure, UAE nationals and foreign investors can buy and own properties in Dubai South, boosting its appeal further.

A Bright Future for Dubai South

The development of Al Maktoum International Airport as the world’s largest hub ensures sustained demand for properties in Dubai South. With a diverse range of affordable and mid-range options, coupled with rising interest in luxury homes, this vibrant new city is shaping up to be a top choice for residents and investors alike.

Whether you're seeking a new home or an investment opportunity, Dubai South is the place to watch.

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