Dubai’s plans to build a new passenger terminal at Al Maktoum International Airport is expected to boost demand for both residential and commercial real estate in Dubai South and its adjacent areas, according to analysts and property developers.
Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, announced that the emirate will construct a new terminal at Al Maktoum Airport with a total investment of Dh128 billion ($34.8 billion) to boost its capacity to 260 million passengers.
Once complete, the airport will have “the world’s largest capacity” and will be five times the size of the current Dubai International Airport, which is currently ranked top globally for international passenger traffic, Sheikh Mohammed said on X on Sunday.
The move is expected to further activate and bolster Dubai South, Expo City Dubai, and the surrounding areas for residential, commercial, hospitality and industrial asset classes.
As an entire city is expected to be built around the airport in Dubai South over the next 10 years, demand for housing for a million people is reported to be generated, further underpinning the city’s growth.
The first phase of the airport project is expected to be ready within 10 years, with the capacity to accommodate 150 million passengers annually.
The airport will offer public transport links including metro, bus and city air transport. It will also have the capacity to handle 12 million tons of cargo annually, with offices of logistics and air transport sectors based around the mega project.
New developments
New developments along Sheikh Mohammed bin Zayed Road and Emirates Road are also expected to be started and demand for residential communities, such as Discovery Gardens, Dubai Investment Park and Al Furjan will rise.
The industrial area of Dubai Investment Park, Jebel Ali and Dubai Industrial City as well as Dubai South Freezone will also enjoy further growth.
Azizi Developments, which is building the Azizi Venice project in Dubai South, has sold more than 5,600 units at the project with sales worth more than Dh5 billion since its launch last year, according to Farhad Azizi, chief executive of the company.
The development of the new terminal is “expected to boost demand for Dubai South as an area, especially the real estate projects by Dubai South Properties, which are likely to see an uptick in interest due to their proximity to the Al Maktoum International Airport”, Nabil Al Kindi, chief executive of Dubai South Properties, said.
He added there are several active construction projects within the Dubai South area, collectively exceeding over Dh4 billion in contract value including several infrastructure initiatives.
“Looking ahead, Dubai South Properties is on track to complete and deliver approximately 2,500 units next year. In addition, other active developers in the area are anticipated to add around 5,500 units to the market,” Mr Al Kindi said.
