In a dynamic move set to reshape Dubai’s real estate landscape, the UAE has unveiled an ambitious airport relocation plan that promises to drive property demand and prices skyward in Dubai South and its neighboring areas.
As the curtain rises on the Dh128-billion Al Maktoum International Airport project, property prices are poised for a dramatic ascent, with forecasts suggesting a potential surge of up to 15% this year alone. The relocation initiative, slated to unfold gradually over the next decade, will see all operations at Dubai International (DXB) transition to the state-of-the-art Al Maktoum International, boasting a staggering passenger capacity of 260 million annually.
Experts predict that the ripple effect of this monumental aviation endeavor will catalyze a housing demand tsunami, with over 100,000 properties projected to be sought after in Dubai South and its environs within the coming decade. Already a magnet for property investors, Dubai South ranks prominently as one of the most coveted areas for villa and townhouse acquisitions, propelled further by the recent influx of multinational corporations following Expo 2020 Dubai.
Svetlana Vasilieva, head of secondary sales at Metropolitan Homes, anticipates a gradual yet steady uptick in property prices, with an initial surge of 10-15% fueled by anticipation of future growth. However, the real crescendo is expected upon the completion of Al Maktoum International’s new passenger terminal, heralding the dawn of a bustling cityscape around the airport, poised to accommodate a burgeoning population of a million residents.
With the imminent boom in the logistics and aviation sectors, fueled by the airport’s expansion, job opportunities are set to burgeon, further amplifying the clamor for residential properties in Dubai South. Faisal Durrani, partner and head of research for Mena at Knight Frank, emphasizes the urgent need for developers to fast-track construction plans to meet the anticipated surge in demand, highlighting the looming supply-demand imbalance in Dubai’s property market.
Paul Kelly, operations director of Allsopp & Allsopp Group, envisions a demand surge necessitating hundreds of thousands of new properties in Dubai South and its periphery, propelled by population growth and infrastructural developments. This sentiment is echoed by Suchit Odhrani, client manager at Betterhomes, who anticipates a doubling in property launches as investors and commuters gravitate towards Dubai South’s accessibility and burgeoning amenities.
Moreover, the strategic proximity of Dubai South to Abu Dhabi adds an additional allure, offering residents a seamless commute between the two emirates. Cherif Sleiman, chief revenue officer at Property Finder, underscores Dubai South’s appeal as a budget-friendly free zone development, poised to attract both renters and buyers alike with its strategic location and burgeoning infrastructure.
As the wheels of progress continue to turn in Dubai South, the city’s real estate horizon stands on the brink of an unprecedented transformation, promising a tapestry of opportunity for investors and residents alike.
Source: Khaleej Times
