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Industry Insiders Have Predicted Massive Demand For Properties – Both Housing And Commercial Spaces – Estimating The Numbers To Be Upwards Of 100,000 Properties In The Airport Vicinities Over The Next Decade, Leading To A Further Price Surge.
Real Estate Boom Following Airport Expansion
The massive expansion project at Al Maktoum International Airport has set off a real estate boom in the surrounding areas, pushing property prices up by as much as 15% in Dubai South and neighboring areas this year alone.
Increased Demand for Residential and Commercial Properties
Industry insiders predict a massive demand for properties, pegging upwards of 100,000 properties in Dubai South and its vicinities over the next decade. This surge is creating a lucrative market for investors.
“We are seeing a tremendous surge in demand for residential properties in Dubai South,” said Farooq Syed, CEO of Dubai-based Springfield Properties. “The airport’s expansion is attracting a significant influx of businesses and residents, driving up demand for housing and commercial spaces.”
Economic Engine Redefining Real Estate Landscape
Syed emphasized that Al Maktoum International Airport is not just an aviation project but a significant economic engine that will redefine Dubai’s real estate landscape. Senior executives at other leading real estate firms and proptech companies also echoed Syed’s views, noting a surge in inquiries for residential and commercial units in the areas surrounding the airport.
Major Airport Expansion Details
The $35 billion passenger terminal at Al Maktoum International Airport, spanning 70 square kilometers, is designed to handle 260 million passengers annually. It features 400 aircraft gates, five parallel runways, and at least 100,000 square meters of retail space, employing 10,000 people. This development is expected to be a cornerstone of Dubai’s economy and a demand booster for housing and commercial properties in the area.
New Residential Projects on the Rise
Industry insiders noted that several residential projects by reputed developers are already springing up to cater to the anticipated influx of businesses, employees, and real estate investors. Master-planned communities like Emaar South, DAMAC’s new Riverside community, and Dubai South Properties’ Pulse Villas are among the prime upcoming or announced projects. Emaar South features over 15,000 residences, while DAMAC Riverside will offer 1,900 townhouses. Pulse Villas, set for completion this year, provides villas and townhouses in the off-plan complex.
Enhanced Amenities for Attracting Investors
Leading developers offer top-tier amenities, including schools, hospitals, mosques, and retail areas, to make their projects more attractive to end users and investors.
Boost to Commercial Real Estate and Infrastructure Development
The commercial real estate sector is also experiencing a boom, with the new airport driving up the development of business hubs and logistics centers. “The airport’s expansion creates a ripple effect across the commercial real estate sector. Businesses are keen to establish a presence in Dubai South, which is rapidly becoming a major business hub with state-of-the-art facilities and excellent connectivity,” said Springfield Properties’s chief executive.
Anticipated Market Growth and Environmental Challenges
Industry experts caution that the rapid pace of development could lead to environmental concerns and potential market saturation. They also anticipate a demand-supply imbalance, with developers announcing only a limited pipeline of projects so far. This will lead to sustained upward pressure on prices, making affordability a critical issue.
“Developers will need to accelerate construction plans to meet the housing needs of the projected influx of residents,” a senior executive at a Dubai-headquartered AI-based proptech said. Syed added that while the growth prospects are exciting, it is essential to manage development sustainably to avoid potential pitfalls such as market saturation and environmental impact.
Final Words
“The success of airport regions like Paris’ Charles de Gaulle and Amsterdam’s Schiphol illustrates the potential for Al Maktoum International Airport to transform Dubai’s real estate market. These airports have evolved into integral parts of their respective cities, driving economic growth and real estate development,” Syed concluded, adding that the massive airport expansion project could be a game-changer for Dubai’s real estate sector.
