The Dubai property market has always been a world-class choice for property investors and homebuyers, and it continues to expand with the emergence of new opportunities for growth.
The next ‘big thing’ that attracts significant attention from the investors is Dubai South. With residential sales value rising from AED 0.72 billion in 2020 to AED 19.6 billion at the end of 2025, the statistics present that the community, which generated AED 15.9 billion in the first 8 months in 2026, is on its way to deliver its strongest year on record.
A Promising Market with Significant Growth
Dubai South has experienced a major boost in residential transactions over recent years. When comparing the community’s market activity, residential sales value in 2025 was almost 27 times higher than in 2020. This is a result of the community’s development, which is linked to new infrastructure, business and employment opportunities as well as the long-term community plan.
Infrastructure and Future Growth Opportunities
The community spans over 145 sq. km. and is grouped into six districts:
Residential
Business
Logistics
Aviation
Golf
Exhibition
One of the highlights of Dubai South is its location, it sits between Dubai and Abu Dhabi with access to major roads, and is close to the Jebel Ali Port and JAFZA. This makes the community both a residential and a business destination.
Approved in 2024, the expansion of Al Maktoum International Airport is planned at a cost of AED 128 billion. The airport is set to be operational in 2032, and is built to handle 260 million passengers and 12 million tonnes of cargo annually.
With the Dubai South master plan aiming to accommodate around 1 million residents and create 500,000 jobs upon full completion, these long term targets offer a noticeable addition to the current property transaction boom.
Affordable Property Investments Are on the Rise
Anarock’s Micro-Market report shows that property prices and buyer preferences are changing. Average residential prices have increased from AED 650 per sq. ft. in 2020 to AED 1,656 per sq. ft. in the first eight months of 2026. At the same time the report shows the average transaction value moving from AED 2.5 million in 2023 to AED 1.2 million in the first 8 months of 2026. This indicates that buyer preferences have shifted towards affordable property investment.
Apartments account for 94.5% of the residential transactions in the first 8 months of 2026, compared to the 31% in 2020. Looking closely at the property mix Anarock Micro-Market report presents a major rise in studio transactions that jumped from 19.5% in 2025 to 45% in 2026 to date.
Areas Investors Should Consider
Dubai South has several submarkets offering a range of different property options. Some of them are:
Emaar South: A golf-and-parkland community offering premium-end townhouses and apartments.
Azizi Venice: A large-scale waterfront community around an 18 km lagoon.
Residential District: The core community offering mid-market apartments and townhouses.
Expo City: Legacy district with mid to upper priced residential and mixed-use properties.
The Golf District: A premium golf community with upper to luxury priced villas and luxury townhouses.
The Pulse: Affordable apartment options for entry-level investors, first-time buyers and tenants.
The choice of community and property depends on the buyer’s requirements, investment objectives and budget.
Off-Plan Sales and Upcoming Supply
Off-plan properties accounted for approximately 94% of the residential transaction volume in the first 8 months of 2026. This was an upsurge from the 73% recorded in 2020. The 724 title deed transactions show that the secondary market remains relatively small in comparison to the 11,703 off-plan transactions taken place during this period.
Looking at the upcoming period spanning from 2027 to 2029, a total of 38,116 units are scheduled to be handed over. This number is more than 3 times the 10,813 units that were delivered between 2016 and 2026 YTD.
Rental Yield Performance
For investors who are expecting rental income, Anarock’s Micro-Market report highlights indicative gross yields of:
Apartments - 4.3%
Townhouses - 3.4%
Villas - 3.0%
The average yield in Dubai South as of now sums up to 3.9%.
The average annual rent value has increased from AED 34,534 in 2020 to AED 82,063 in the first 8 months of 2026. Investors should be aware that the gross yields and the projections do not account for service charges, vacancies and other transactional costs. These factors should be anticipated when proceeding towards property investment.
Is Dubai South Worth Investing In?
Dubai South has recorded strong sales growth, rising prices per sq. ft. and a visible shift in demand towards apartments and studios. The impeccable connectivity, infrastructure development, airport expansion and the long-term development plan of the community only adds to its investment potential, creating more business and attracting more residents.
This is a brewing opportunity for investors looking at emerging residential markets that have a lot to offer across a wide range of real estate options. However, every investment decision should be based on individual requirements, budget, and the expected outcomes. Understand how property prices, market fluctuations, location and upcoming supply volumes may affect your investments by referring to expert guidance and statistics.
Explore Anarock Research and Advisory’s Dubai South Residential Micro-Market Report for a closer look or contact our property experts for an in-depth conversation
Source: Anarock Research and Advisory’s Dubai South Residential Micro-Market Report