They call Dubai “progressive” for a reason. From architectural marvels to economic progress, this city is definitely one-of-a-kind. The latest addition to its array of delight is the expansion of Al Maktoum International, poised to shake the real estate spectrum, especially for South Dubai. If you’re a real estate investor, this could be the right time to bet your dollars in this region.
A Rewarding Plan For The Future
Dubai International is currently the world’s busiest airport. But how is that a problem?
According to the latest data released by DET (Department of Economy & tourism), Dubai’s annual tourism has surpassed a record number in 2024 (more than 17.5 million). Emirate’s leaders believe the number is due for a significant growth in the coming years. Thanks to the UAE’s Tourism Department’s ambitious strategy anticipated to attract 25 million tourists by 2025! This is something beyond the capacity of Dubai International Airport. So, the expansion of Al Maktoum is more of a need-of-the-hour thing.
But that’s not the only reason. The upgradation of Al Maktoum is also a way forward to realize the goals of Saudi Vision 2030, aimed at diversifying Saudi Arabia and lowering its dependence on oil-churned revenue.
As Ambitious As It Gets
The blueprint for the new phase of Al Maktoum International (Dh128) was finalized in late April. At a projected cost of AED35 billion, the expansion is in line to meet the demand of accommodating a steady influx of tourists to Dubai. The new air terminal, when operational, will serve more than 260 million international travelers every year.
That being said, Al Maktoum, which is currently Emirate’s second-largest airfield, will transform into the world’s largest airport, replacing Dubai International by 2034. The master plan has been designed by Foster + Partners, in collaboration with the infrastructure design partner, Jacobs. Also, Mace Group (UK) has been recognized as the official delivery partner.
The most befitting outcome of this planned expansion is the development of areas in proximity to Al Maktoum. With this project, Emirates intends to fulfill a long-time dream of an “airfield city”. Simply put, a fully functional urban center, acting as a home to a million residents and steadfast connectivity to Dubai’s main roads, as well as transit networks.
Such a structure leaves plenty of room for Dubai’s real estate investors to capitalize on the opportunities around the airport site. Multiple off-plan projects centered in Dubai South around Expo City are already grabbing investor eyeballs. For instance, the Expo City now features “Sky Residences” with flexible payment plans for over eight years, including five years of post-handover installments, starting at Dh1.8 million!
The Key Beneficiaries
It’s a no-brainer that areas close to the Al Maktoum Airport will benefit the most, especially Expo City and Dubai Marina. But given the wide radius, several other locations are in queue to reap the benefits.
For starters, there’s Jebel Ali, Dubai World Central, and Dubai Investments Park right at the center of infrastructural development. No wonder, land values will break through the roof, which means a gold mine for real estate investors. Other prominent locations to make the most out of the coastal developments include Ghantout and Al Jurf. Besides, there’s the corridor connecting the coast to Expo City extending beyond the borders of Abu Dhabi.
The Changing Dynamics Of South Dubai Real Estate
The real estate market across South Dubai has been a warm and cold experience over the past decade. Considering this region enjoys an eclectic mix of residential and commercial properties, Al Maktoum’s expansion is no short of a catalyst.
The current land prices in South Dubai rests between Dh160-Dh180 per square foot. And over the last year, realtors have witnessed an uptick of 35%. Rentals now start at Dh50,000 annually for a single, furnished studio apartment and can go up to Dh100,000 for a 3-bedroom unit.
Market pundits believe the property prices will see a surge in another two to three months as Al Maktoum’s expansion picks up pace. Above all, the demand for mid-segment serviced apartments will be higher as more workforce joins the development scene around the airport.