Dubai South has evolved from an "up-and-coming" area to one of the most closely watched real estate markets in the emirate. Anchored by the expansion of Al Maktoum International Airport, the legacy of Expo City Dubai, and new infrastructure like the Dubai Metro Blue Line, the community is rapidly maturing into a full-fledged city with strong investment appeal.

Dubai South in the Wider Market Cycle

Dubai’s real estate market has seen a 50% price increase over the last decade, with the average price per square foot rising from AED 1,000 to over AED 1,500 between 2014–2024. The Dubai Land Department reported a 20% YoY growth in total real estate transaction values in 2024, highlighting sustained investor demand.

Within this cycle, Dubai South stands out as a high-growth corridor, still priced below the city average but quickly catching up.

Price Trends and Transaction Data

Apartments:

• Average price per square foot: AED 1,350–1,450

• Average sales price: ~AED 1.08 million (up 15% YoY)

• Transaction volume: 5,100+ sales in 12 months (+78% YoY)

• Off-plan sales: 4,300+ units (+124% YoY)

Townhouses and Villas:

• Average villa price: AED 1,220–1,600/sqft

• South Bay villas: AED 1,300–1,450/sqft

• Price growth: ~37% per square foot recently

• Gross rental yields: ~7.5%

Rental Yields:

• Apartments: ~5.7% average

• Some sub-communities: 6–8%

Structural Drivers of Growth

1. Master-Planned Aerotropolis: Dubai South covers 145 km², integrating residential, commercial, logistics, and aviation zones, targeting 700,000 residents and 65,000 jobs. This scale ensures self-sustaining housing demand.

2. Al Maktoum International Airport:

• AED 128 billion expansion underway

• Will become the world’s largest airport, 260 million passengers capacity

• Aviation-driven jobs and housing demand centered in Dubai South

3. Expo City Dubai & 2040 Urban Master Plan:

• Expo City repurposed as a permanent innovation hub

• Mixed-use development fueling long-term housing demand

4. Dubai Metro Blue Line:

• 30 km, 14-station extension linking Dubai South to Dubai Creek Harbour and Festival City

• Transit-oriented communities historically see above-average appreciation

Short-Term Volatility vs Long-Term Opportunity

Fitch Ratings forecasts a 10–15% possible correction in Dubai residential prices through 2025–26 due to new supply. However, Dubai South remains resilient because:

• Prices are below prime districts

• Real demand from aviation, logistics, and Expo-related jobs

• Infrastructure projects are long-term and state-backed

For investors with a 5–10 year horizon, fundamentals outweigh short-term volatility.

Why Dubai South Remains Attractive

• Double-digit price growth in apartments

• Surging transaction volumes, especially off-plan

• Healthy rental yields (5.5–7.5%)

• Transformational infrastructure with long-term government backing

Dubai South is still early-to-mid in its growth curve, making it an ideal opportunity for investors seeking current income, capital appreciation, and long-term urban growth.

Take Action

Secure your position in Dubai’s next urban center. Contact fäm Properties today for a data-driven consultation to balance current rental income with long-term capital growth potential.