Terminal project to drive property demand in Dubai South

Dubai's Al Maktoum International Airport Expansion to Boost Real Estate Demand

Dubai's plans to construct a new passenger terminal at Al Maktoum International Airport are expected to drive increased demand for both residential and commercial real estate in Dubai South and its surrounding areas. The emirate will invest Dh128 billion ($34.8 billion) to expand the airport's capacity to 260 million passengers, making it the world's largest.

The airport expansion is set to further activate and bolster Dubai South, Expo City Dubai, and the adjacent areas for various asset classes, including residential, commercial, hospitality, and industrial. The project is anticipated to generate demand for housing to accommodate a million people, underpinning the city's growth. The first phase of the airport is expected to be completed within 10 years, with the capacity to handle 150 million passengers annually.

The announcement has renewed the focus on developing Dubai World Central (DWC), and while immediate impact on residential prices is not expected, the commercial market may see additional uplift in the medium term due to the anticipated demand for airport-related businesses. New developments along Sheikh Mohammed bin Zayed Road and Emirates Road, as well as increased demand for residential communities like Discovery Gardens, Dubai Investment Park, and Al Furjan, are also anticipated. The industrial areas of Dubai Investment Park, Jebel Ali, Dubai Industrial City, and Dubai South Freezone are also expected to experience further growth.