This Dubai South case study looks at a district built around an airport planned to be the largest in the world, and marketed as a long-term investment. It tracks resale prices, compares yields with other accessible areas and weighs the airport plan against the supply expected over the next two years.
Dubai South's marketing message is simple: buy early, next to the future main airport, at a fraction of the prices in central Dubai. The data currently supports part of that idea. The other part depends on an infrastructure timetable that has already slipped once.
Background: From Dubai World Central to Dubai South
Dubai South is a 145 sq km district in south-west Dubai, built around Al Maktoum International Airport. The government unveiled it in 2006 as Dubai World Central, and renamed it Dubai South in 2015 (Metropolitan).
Residents arrived relatively late. The Pulse was one of the first neighbourhoods to be occupied, in 2020. Today it stands alongside newer communities, including Emaar South with its 18-hole golf course, South Bay with a three-kilometre crystal lagoon, and Azizi Venice (Metropolitan).
Most residential communities are freehold, so Israelis can buy in them directly. The district borders Expo City Dubai, but it still has no metro station, so most residents get around by car (Metropolitan).
For the full area profile, read our guide to Dubai South.
The Airport Plan: What Has Actually Been Approved
The investment case rests on one project. In April 2024 Dubai approved the expansion of Al Maktoum International Airport at a cost of AED 128 billion. The plan includes 400 aircraft gates and five parallel runways, and the Ruler of Dubai announced that all operations of Dubai International Airport would move there (Dubai Media Office).
The first phase is planned for a capacity of 150 million passengers a year, rising to 260 million when the whole project is complete (Dubai Media Office). For comparison, Dubai International Airport handled 95.2 million passengers in 2025 (The National). In June 2026 Dubai confirmed that the first phase is still scheduled for completion in 2032, with contracts worth more than AED 13 billion already under way and construction of a second runway completed (Dubai Media Office). Dubai Airports expects the new runway to open by the end of 2027 (What's On).
This progress matters because the project has stalled before. In 2018 Reuters reported that an earlier expansion plan, meant to reach 120 million passengers by 2025, had been delayed and redesigned. In 2019 Bloomberg reported that construction had stopped and funding had been frozen. The current plan has larger sums committed and visible work on site, but 2032 is still a target and not a guarantee.
Price Performance: A Strong Year from a Low Starting Point
Where Prices Started
All price figures in this Dubai South case study are averages of resale transactions only, from Metropolitan's reports based on Dubai Land Department data. In the first quarter of 2025 the average price of resale apartments in Dubai South stood at AED 1,019 per square foot, based on 144 transactions. The average price of resale townhouses and villas stood at AED 1,115 per square foot.
Where Prices Stand Today
In the first quarter of 2026 the average price of resale apartments reached AED 1,260 per square foot, based on 148 transactions. That is a rise of about 24% on the same quarter of 2025. Townhouses and villas reached AED 1,299 per square foot, a rise of about 16.5% (Metropolitan's resale reports).
| Period | Apartments per sq ft | Apartments per sqm | Townhouses and villas per sq ft | Townhouses and villas per sqm |
|---|---|---|---|---|
| Q1 2025 | AED 1,019 | approx. AED 10,970 | AED 1,115 | approx. AED 12,000 |
| H1 2025 | AED 1,013 | approx. AED 10,900 | AED 1,166 | approx. AED 12,550 |
| Q3 2025 | AED 1,054 | approx. AED 11,350 | AED 1,245 | approx. AED 13,400 |
| Full year 2025 | AED 1,217 | approx. AED 13,100 | AED 1,263 | approx. AED 13,600 |
| Q1 2026 | AED 1,260 | approx. AED 13,560 | AED 1,299 | approx. AED 13,980 |
Source: Metropolitan's resale reports, which cover resale transactions only. Prices per sqm were calculated from the price-per-square-foot figures in the sources. One square metre equals 10.764 square feet.
Apartment prices barely moved in the first nine months of 2025. The full-year average, AED 1,217, is considerably higher than the figures for those nine months, which means the average in the last quarter of 2025 was far higher. This may reflect a change in the mix of units sold, such as newer or larger homes, and not only a real price rise. On that reading, the first quarter of 2026 is below the last quarter of 2025, and the rise of about 24% reflects a first-quarter to first-quarter comparison. It does not show that prices kept rising in early 2026.
Comparison with Other Areas
Property Monitor put the average price of apartments in Dubai at AED 1,969 per square foot for the period between 1 January and 6 June 2026, and the Business Bay average at AED 2,547 (Engel & Völkers). On these figures, the average resale price of apartments in Dubai South in the first quarter of 2026 is about 36% below the city apartment average and about half the Business Bay level. The figures were collected by different bodies and cover different periods, so the gap should be read as an estimate only.
The 2026 Slowdown
The first quarter of 2026 is the latest figure for Dubai South in this data series, so it does not yet reflect the slowdown recorded across the city. Cushman & Wakefield Core data showed a quarterly decline of 4% in Dubai residential prices and a 6% decline in rents in the second quarter of 2026 (Khaleej Times). No second-quarter figure for Dubai South has yet been published from the same resale transaction series.
You can follow the latest figures in our Dubai real estate price index.
The Off-Plan Premium
New projects trade well above the prices of ready properties. For example, Dubai Land Department data published on Property Finder shows that an off-plan studio in Azizi Venice sold on 4 August 2026 for AED 710,040, for 381 square feet. That is about AED 1,864 per square foot.
This is a single transaction and not an average, but the price is about 48% above the resale average for the first quarter of 2026, which stood at AED 1,260. Part of the gap reflects a new building and a payment plan. The rest rests on the expectation that appreciation in the area will justify the price by handover.
Rental Yield Among the Highest in Dubai
This is Dubai South's clearest advantage today. Property Monitor data for August 2026, published by Engel & Völkers, shows an average yield of 7.21% on apartments in Dubai South (Engel & Völkers).
| Area, August 2026 | Average gross yield on apartments |
|---|---|
| International City | 8.93% |
| Dubai Sports City | 7.76% |
| Dubai South | 7.21% |
| Al Furjan | 7.08% |
| Jumeirah Village Circle | 6.36% |
| Dubai Hills Estate | 5.82% |
Source: Property Monitor via Engel & Völkers. According to the same source, the average yield on apartments across Dubai was 6.66%.
Dubai South shows a higher yield than Jumeirah Village Circle and the city apartment average, although several older, accessible areas still yield more. The figures are gross, before service charges, vacancy periods and management fees. Rents are also under pressure: Property Finder's rent forecast for 2026 lists Dubai South, alongside Business Bay and Jumeirah Village Circle, among the areas where rents are softening most as many new units are handed over in late 2026.
A Worked Example for a Resale Apartment
To illustrate the figures: a 450 square foot resale apartment priced at the area average for the first quarter of 2026, AED 1,260 per square foot, would cost about AED 567,000. At the average gross yield of 7.21%, the annual rent would be about AED 40,900. If rents fall by 10%, the income would drop to about AED 36,800 and the gross yield would be about 6.5%.
The example combines two area averages and is for illustration only. Studios usually trade at a higher price per square foot, so their yield is lower. Actual prices and rents vary between buildings, and net income will be lower after service charges, periods when the property is not let, and management fees.
Handover History and the Supply Wave
Who Is Building in the Area
The master developer, Dubai South, continues to build its own communities. In 2026 it awarded a AED 2 billion construction contract for the Hayat project, a community of about 2,500 homes. The first phases are expected to be handed over in 2028 (Dubai Media Office).
Alongside it, many private developers are active in the area, from Emaar at Emaar South to much smaller companies. As in Jumeirah Village Circle, build quality and handover history vary from project to project.
There is no public source that tracks the on-time handover rate across the whole district. The Pulse shows that the area has communities that were completed and have been occupied since 2020. For every off-plan project it is important to check construction progress and escrow account details in the Dubai Land Department's Dubai REST app and in our handover tracker.
The Expected Supply
Supply is the main short-term risk. A Morgan's International Realty study from mid-2025 found 7,860 units scheduled for handover in Azizi Venice alone in 2025 to 2027. This is the third-largest supply pipeline in Dubai, after Jumeirah Village Circle and Business Bay (Morgan's International Realty). The handover of many similar apartments at the same time will leave owners competing for the same tenants and buyers.
Liquidity: A Small Resale Market
The resale market in Dubai South is still small. Metropolitan counted 866 resale apartment transactions in 2025 and another 794 transactions in townhouses and villas, about 1,660 transactions in total.
A property can be sold, but a seller in the resale market may be competing with developers offering new units on payment plans. It is worth allowing for the sale to take time.
Scorecard
The scorecard summarises the Dubai South case study on the basis of the data presented above.
| Category | Score out of 10 | Basis for the score |
|---|---|---|
| Location | 6 | Next to Al Maktoum Airport and Expo City, but far from Downtown Dubai and with no metro station today |
| Developer | 6 | The Dubai South master plan and the presence of Emaar, but many private developers of different sizes operate in the area and there is no public tracking of handovers across the district |
| Project concept | 7 | An airport city with a lagoon, golf and family communities, offering apartments, townhouses and villas |
| Pricing | 8 | Average price of AED 1,260 per square foot for resale apartments in the first quarter of 2026, about 36% below the Dubai apartment average |
| Rental potential | 8 | Average yield of 7.21% on apartments, above Jumeirah Village Circle and the city apartment average of 6.66%. Rents are under pressure as new units are handed over |
| Capital appreciation potential | 7 | Resale apartment prices rose by about 24% between the first quarter of 2025 and the first quarter of 2026. The AED 128 billion airport plan is progressing towards a 2032 target, but earlier plans stalled and 7,860 units are expected in Azizi Venice alone |
| Liquidity | 7 | About 1,660 resale transactions in apartments and villas in 2025. Resale sellers compete with new projects offered on payment plans |
The bottom line: the area suits patient, long-term investors looking for a high yield and a low entry price who can wait for the airport expansion. It is less suitable for those who pay a high premium for an off-plan apartment and want to sell quickly during the handover wave of 2026 and 2027.
Dubai South Case Study: Takeaways for Israeli Investors
- Think long term. The airport is the main reason to invest in the area, and its first phase is expected in 2032. If you need the money within three years, the main growth driver may not yet be fully at work.
- Compare off-plan with resale. New projects trade well above resale averages. Before signing for a new unit, check recent resale transactions nearby.
- Buy the project, not the district. When many developers operate in the area, the developer's history and the state of the project's escrow account matter more than the area average.
- Test the yield under a conservative scenario. Yields are high today, but rents are under pressure. Check the deal with our calculators, including a scenario where rents are 5% to 10% lower than today.
- Inspect the property before handover. Much of the stock in the area is new and built by developers of different sizes, so it is worth booking a professional snagging inspection for every new unit.
Frequently Asked Questions
Is Dubai South a good investment in 2026?
According to the Dubai South case study, a long-term investment offers a low entry price and a yield of more than 7%. Most of the upside depends on the expansion of Al Maktoum Airport, whose first phase is expected in 2032. A quick profit is less certain, because a large supply is due in 2026 and 2027 and rents are under pressure.
What is the average price per square foot in Dubai South?
According to Metropolitan's resale reports, the average price of resale apartments in the first quarter of 2026 was AED 1,260 per square foot, about AED 13,560 per sqm. For resale townhouses and villas the average was AED 1,299 per square foot.
What rental yield can you expect in Dubai South?
According to Property Monitor data published by Engel & Völkers, the average gross yield on apartments stood at 7.21% in August 2026. The net yield will be lower after service charges, vacancy periods and management fees.
When will the Al Maktoum Airport expansion be completed?
In June 2026 Dubai confirmed that the first phase, planned for a capacity of 150 million passengers a year, is still expected to be completed in 2032. Completing the whole project, for a capacity of 260 million passengers, will take considerably longer.
Can Israelis buy property in Dubai South?
Yes. Most residential communities in Dubai South are freehold, so buyers of any nationality can purchase in them directly.
Wondering Whether to Buy in Dubai South Before the Airport Expansion?
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