Al Maktoum International Airport Project Set to Boost Nearby Dubai Locations

Locations within a 20-kilometer radius of Dubai’s new Dh128 billion mega-airport project are poised for significant growth as the city’s largest infrastructure project takes off.

“The immediate beneficiaries will be Dubai South and Expo City, but even areas slightly further from Al Maktoum International Airport will feel the impact,” said Vijay Doshi, Managing Director of Vincitore Realty. “Any available land in this radius is likely to be quickly acquired.”

Announced in late April, the airport project aims to handle 260 million passengers annually, making it the world’s largest airport. The first phase, which will take 10 years to build, will have a capacity of 150 million passengers per year, spanning 70 square kilometers.

Real Estate Boom Expected

Dubai South property values and rents were already rising before the announcement. Now, the region is set for another surge. Off-plan projects in Dubai South and Expo City are attracting investors, with Expo City launching Sky Residences with payment plans up to 8 years. Prices start at Dh1.8 million.

According to Ranjeet Chavan, CEO of Nautilus Properties, areas like Jebel Ali, Dubai Investments Park, and Dubai World Central will also see development growth. Improved infrastructure and connectivity will increase land and property values, offering lucrative opportunities for investors.

Simon Townsend, CEO of Avison Young, highlighted additional areas that could benefit. “The activation of Palm Jebel Ali and surrounding areas, as well as lands adjacent to Dubai Parks, will have enhanced connectivity through this new aviation hub. Coastal developments like Al Jurf and Ghantout, and the corridor from the Expo site to the coast, through to the Abu Dhabi border, will also benefit.”

A Broader Perspective

Townsend also noted the potential synergy between Dubai’s airport expansion and growth at the new Abu Dhabi airport terminal. These two global aviation hubs, less than 60 minutes apart, could create a new ‘golden rectangle’ for projects benefiting from enhanced air connectivity.

Dubai South on the Rise

Dubai South has been developing its residential and commercial zones over the last decade. Now, it is set for the next growth phase with the new airport. Eima Hajimalian, Manager at GCP Properties, reported that land values in Dubai South have increased by 35% in the past year, even before the airport announcement.

Property Market Dynamics

Over the last 12 months, Dubai South has seen double-digit increases in property prices and rental values, particularly for apartments. Rental options range from Dh50,000 annually for a furnished studio to Dh100,000 for a 3-bedroom unit.

“I believe the upward price action around Al Maktoum International can start within the next two to three months,” said Doshi. “The new airport announcement will soon reflect in real estate activity, with opportunities to create mid-segment serviced apartments for the workforce building the airport.”

The announcement marks the next chapter of growth for Dubai South.