Market Dynamics & Investor Behavior
Property owners in Dubai South and its vicinity have recently begun to raise prices for their properties on sale. Many investors are demanding higher rates than before, while others have decided to hold off on sales for the time being. The primary reason behind this shift is the announcement of the relocation of Dubai Airport (DXB) to Dubai South.
The Impact of Airport Relocation
Ever since the Dubai government announced the Al Maktoum International in Dubai South, sellers have increased property prices by up to 25%. For instance, an investor who was initially considering buying a three-bedroom property in Dubai South for Dh1.6 million saw the price jump to Dh1.8 million and then to Dh2 million after the airport announcement. Investors who had previously put their properties up for sale are now having second thoughts, expecting further appreciation in property values.
High Occupancy Levels and Future Prospects
Dubai South already boasts an occupancy level of over 70%. As airport development begins and more people relocate to this area, demand for housing is expected to increase further. The government’s plan to transfer all operations from Dubai International (DXB) to Al Maktoum International (DWC) in Dubai South over the next few years will significantly impact the real estate market. The new airport aims to scale up passenger capacity to 260 million annually and “fully absorb” DXB’s operations within a decade.
Investment Strategies
Investors are adjusting their strategies based on the airport’s expansion. Sellers are postponing sales to capitalize on expected price increases, while buyers are seeking properties that promise long-term benefits from the upcoming development and infrastructure enhancements. Key areas like Dubai South, Mohamed bin Zayed Road, and Emirates Road are witnessing higher asking prices due to the anticipated surge in demand triggered by the airport relocation.
The Bottom Line
Dubai’s real estate market is dynamic, and investors are closely monitoring the impact of infrastructure projects. While some choose to hold off on sales, others see this as an opportunity to invest strategically. As Dubai South transforms into an ‘entire city’ around the airport, property values are likely to rise over time, making it an attractive proposition for both buyers and sellers.
Remember, in Dubai, property isn’t just about square footage; it’s about a lifestyle that blends luxury, innovation, and opportunity.
