Dubai Property Market
Property sale volume
Property sale value (AED)
A master-planned community with staggering investment returns
Dubai South boasts a rare combination of affordable prices and hard-to-beat returns. Its strategic location on the city’s periphery has attracted a steady stream of demand from residents, while exciting upcoming projects have cemented the area as a top investment destination.
One of these projects is Al Maktoum International Airport, which is set to be the world’s largest airport. When fully operational, it will put Dubai South on the global map as a major transport hub and push prices even higher.
Previously known as Dubai World Central, the 145-square-kilometre area of Dubai South is the vision of the Vice President and Prime Minister of the UAE himself. Designed to be a futuristic sustainable development, it’s now attracting the attention of investors who want to invest outside Dubai’s centre.
- Abu Dhabi
- Ajmal Makan City
- Al Barari
- Al Habtoor City
- Al Sufouh
- Arabian Ranches
- Business Bay
- City of Arabia
- DAMAC Hills
- DAMAC Lagoons
- Downtown Dubai
- Dubai Creekside
- Dubai Harbour
- Dubai Healthcare City
- Dubai Hills
- Dubai Hills Estate
- Dubai Islands
- Dubai Land
- Dubai Maritime City
- Dubai South
- Dubai Sports City
- Dubai Studio City
- Emaar Beachfront
- Jebel Ali
- Jumeirah Beach Residence
- Jumeirah Golf Estates
- Jumeirah Lake Towers
- Jumeirah Village Circle
- Jumeirah Village Triangle
- La Mer
- Madinat Jumeirah Living
- MBR City
- Nad Al Sheba
- Palm Jumeirah
- Ras Al Khaimah
- Sobha Hartland
- South Bay
- The Valley
- Town Square
- Wadi Al Safa 2
- Yas Island
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Dubai South's Property Market Performance
Dubai South property statistics for completed 1-bedroom properties:
- The average asking sales price in Dubai South in October 2023: AED 650,000
- The average asking sales price in Dubai South in October 2023 per sq ft: AED 991
- The average transaction sales price in Dubai South in October 2023: AED 545,000
- The average transaction sales price in Dubai South in October 2023 per sq ft: AED 775
Prices have followed a general upward trend over the last few years. The average transaction price for a 1-bed property in November 2021 was AED 360,390 — around 40% lower than the figures for October 2023.
Larger properties have performed even better, with 2-bedroom villas and townhouses boasting an average transaction price of AED 1.65 million in October 2023, compared to AED 1.1 million in February 2023.
While prices are rising, Dubai South offers better value than more central or well-known areas in Dubai, which gives it promising investment potential. In Downtown Dubai, prices per sq ft are more than double those of Dubai South.
Average capital appreciation in Dubai South over the past 12 months
How to Choose a Property in Dubai South
Dubai South is known for its smart, sustainable developments and community-oriented, vibrant atmosphere.
Many of the residential developments were designed to make ideal homes for those who work nearby — for instance, there is a dedicated area for blue-collar professionals. These projects make good choices for investors who want a steady source of tenant demand.
Investors can also acquire townhouses, villas, and gated communities in Dubai South to target a more luxury market segment.
Dubai South is divided into eight districts, with the majority of residential developments lying in the dedicated Residential District. Another area of interest is Expo Village, which was established to house delegates during Expo 2020 Dubai (a globally important convention). Now, the development is being repurposed into a residential area — combining functionality with an exciting legacy.
The Rental Market in Dubai South
It’s not just the figures for capital appreciation and sales price performance that have been roaring in Dubai South. The destination has also enjoyed impressive rental market performance, with yields matching the Dubai market as a whole.
This makes it the perfect place to benefit from Dubai’s high capital growth for a slightly lower investment amount.
Dubai South might have remained below the radar for a while, but it’s now emerging as a top destination for midmarket housing, and supply can scarcely keep up with demand. Recent Ejari contracts signed and renewed by the Dubai Land Department helped to give the area some of the best rental gains of the last year, and experts predict the positive trends will continue.
Starting rental values for Dubai South property:
- Average rental price for 1-bed Dubai South properties: AED 50,000
- Average rental price for 2-bed Dubai South properties: AED 80,000
- Average rental price for 3-bed Dubai South properties: AED 115,000
- Average gross yield for Dubai South properties: 7%
Dubai South real estate outlook
Forecasts suggest there’s a bright future ahead for what is one of the UAE’s biggest master-planned developments.
Dubai South has carved out its own niche by catering to those who want midmarket properties in a convenient location, and it’s now experiencing growth in all directions.
The destination was one of the top off-plan investment areas in 2022, and it’s also one of the Dubai submarkets set to have the greatest supply of new villas between 2023 and 2028. Plus, there are 1,100 units scheduled to be completed by 2025.
Dubai South is currently home to 25,000 residents, but this number is expected to reach 1 million over the next few years. Some forecasts predict 35% of Dubai’s GDP will come from Dubai South by 2025, which will help to push prices up.
Another perk of Dubai South is that it’s a free zone, which means investors in the area enjoy benefits like easy visa processing and no taxes. This will drive real estate demand further.
Dubai south location and lifestyle
Dubai South is strategically located on the outskirts of Dubai, giving it the best of both worlds — affordable prices yet nearby major sites in the city. It’s close to Dubai Investment Park and Sheikh Mohammed Bin Zayed Road.
All eight districts are seamlessly integrated with transport links. As well as Residential City, there’s Aviation District (home to Al Maktoum International Airport) and Golf City, which features an impressive 18-hole golf course.
Dubai South will also be a part of the national railroad system Etihad Rail and has the largest manmade port in the world, Jebel Ali Port. Transport is no issue here, which is a major pull for investors and residents alike.
Yet what many people love about Dubai South is the community feel it offers as a tailor-made and visionary development. It’s also packed full of green spaces, restaurants, shops, and local facilities, plus high-quality medical facilities and schools.
What is the mix of off-plan and completed properties in Dubai South?
Dubai South features mostly completed properties. However, there are also some off-plan projects being launched.
WHAT IS THE DIFFERENCE BETWEEN EMAAR SOUTH AND DUBAI SOUTH?
Emaar South is a community within Dubai South, which is home to various residential developments.
WHAT INVESTMENT BUDGET DO YOU NEED TO BUY PROPERTY IN DUBAI SOUTH?
Dubai South remains one of the more cost-effective locations in Dubai, with properties available for less than AED 1 million. Smaller properties are available for a budget of under AED 700k, but a budget between AED 1 and 2 million is needed for larger homes.