Dubai’s $35bn mega airport is creating the city’s next property hotspot

Dubai’s AED128bn ($34.9bn) Al Maktoum International Airport expansion is driving investor interest in Dubai South, Expo City and Emaar South.

Dubai’s AED128bn ($34.9bn) expansion of Al Maktoum International Airport is beginning to reshape investor interest across the emirate’s southern corridor, with aviation, logistics, employment and residential development combining to create what could become Dubai’s next major property growth area.

According to Provident Estate, the airport expansion is already helping drive demand across Dubai South, Emaar South, Expo City Dubai and Jebel Ali, where business growth, infrastructure investment and new residential projects are gathering pace ahead of the airport’s future expansion.

The company said the combination of transport infrastructure, job creation and population growth is encouraging investors to look beyond Dubai’s established property hotspots.

Al Maktoum International Airport is being expanded at a cost of AED128bn ($34.9bn) and is ultimately designed to accommodate 260m passengers annually, alongside 12 million tonnes of cargo, five parallel runways and more than 400 aircraft stands.

Its first major phase is expected to provide capacity for approximately 150m passengers a year, making it one of the world’s largest aviation infrastructure projects.

Mega airport expected to transform southern Dubai

An aviation economic-impact study cited by Provident Estate estimates that construction linked to the airport could contribute approximately AED6.1bn ($1.66bn) to Dubai’s GDP by 2030 while supporting around 132,000 jobs.

The expected increase in employment is forecast to drive demand for housing, offices, hospitality, retail and community services throughout southern Dubai.

Loai Al Fakir, CEO of Provident Estate, said: “An AED128bn airport designed for 260m passengers is not simply an aviation project. It is the foundation of a new economic centre that will influence where companies operate, where employment is created and where future residents choose to live.

“The most important number for property investors is not passenger capacity alone. It is the scale of business activity, job creation and population growth expected around the airport. As infrastructure and employment move south, residential and commercial demand are likely to follow.”

Provident Estate said commercial activity is already increasing across Dubai South.

Business growth already accelerating

The master development attracted 653 new companies during 2025, taking the total number of operating businesses to more than 4,200.

New business licences increased by 65 per cent, while the area retained 90 per cent of its existing companies.

The emerging investment corridor links Dubai South with Expo City Dubai, Emaar South and Jebel Ali, combining aviation infrastructure with established logistics, free-zone operations, residential communities and global trade routes.

Residential activity is also strengthening. Dubai South recorded more than AED19bn ($5.17bn) in residential sales during 2024, while the first tower of the South Square development sold out within three hours, indicating growing demand for homes close to the future airport.

Emaar South continues to expand with apartments, townhouses and villas centred around an 18-hole championship golf course, while Expo City Dubai is evolving into a permanent mixed-use business and residential district.

International investors increasingly looking south

Jebel Ali strengthens the corridor’s logistics credentials. During the first half of 2025, Jebel Ali Port handled 545,000 vehicles, an increase of 28 per cent year on year.

Provident Estate said overseas investors continue to increase exposure to Dubai’s property market.

According to the company, UK investment in Dubai homes rose 62 per cent year on year during the second quarter of 2025, with British buyers becoming the emirate’s largest foreign buyer group.

Indian investors continue to target Dubai for rental income, capital preservation, business access and family relocation, while British and European buyers are increasingly seeking long-term international diversification.

Mohammad Jaafari, Off-Plan and Operations Director at Provident Estate, said: “Investors are becoming more analytical. They are no longer assessing Dubai South only according to current occupancy or today’s rental returns. They are studying where infrastructure, jobs and population will be concentrated over the next five to ten years.

“British and Indian buyers remain important, but their investment objectives vary. International investors may be seeking early positioning and capital appreciation, while UAE-based buyers are often considering mortgage affordability, family use and future rental demand. Dubai South and Emaar South can appeal to both groups.

“The airport will be a major catalyst, but proximity alone does not guarantee investment performance. Developer strength, project delivery, future supply, property type and community maturity will determine which assets convert infrastructure growth into sustainable value.”

New growth corridor

Provident Estate said the airport expansion is creating more than a new aviation hub.

Combined with Dubai South, Emaar South, Expo City and Jebel Ali, the development is forming an integrated economic and residential corridor that could shape where businesses locate, where jobs are created and where future housing demand is concentrated over the coming decade.