Dubai is set to witness a significant transformation with the development of a new passenger terminal at Al Maktoum International Airport. This ambitious project, announced by Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, is poised to drive up demand for residential and commercial real estate in Dubai South and its neighboring areas, particularly Al Furjan. With a staggering investment of Dh128 billion ($34.8 billion), the new terminal aims to enhance the airport’s capacity to 260 million passengers, making it the largest in the world.
Boosting Property Demand in Al Furjan
As the new terminal nears completion, analysts and property developers are bullish about the ripple effects it will have on surrounding areas, including Al Furjan. The development promises to transform Dubai South into a bustling hub, thereby increasing demand for housing to accommodate the influx of people expected to move to the area.
Strategic Positioning and Connectivity
Al Furjan, strategically located near the new airport, is set to benefit immensely from the enhanced connectivity and infrastructure developments. The new airport will feature public transport links, including metro, bus, and city air transport, making it highly accessible. This increased accessibility is likely to attract airport employees and businesses supporting airport operations, driving up property values in Al Furjan.
Residential and Commercial Growth
The expansive development will stimulate growth across various real estate segments. According to Simone Dobson, Chief Operating Officer of Chestertons Mena, there will be significant demand from airport employees migrating from Dubai International Airport to Dubai World Central. This migration is expected to boost the popularity of properties in Al Furjan, especially those within the affordable price bracket.
Developer and Investor Optimism
Developers are optimistic about the rising demand in Dubai South and nearby areas like Al Furjan. Dubai South Properties and other developers have already launched several phases of new projects, anticipating increased interest due to their proximity to the new airport. Nabil Al Kindi, CEO of Dubai South Properties, highlighted the ongoing and upcoming projects in the area, which collectively exceed Dh4 billion in contract value.
Market Dynamics and Future Prospects
While immediate impacts on property prices might not be drastic, the medium to long-term outlook is promising. Haider Tuaima, Director and Head of Real Estate Research at ValuStrat notes that the commercial market may see an uplift due to the expected demand for airport-related businesses. Overall, the renewed focus on developing Dubai South and the surrounding areas is likely to drive substantial appreciation in property values.
The new Al Maktoum International Airport terminal is not just an infrastructural marvel but a catalyst for real estate growth in Dubai South and its neighboring communities like Al Furjan, Jebel Ali and Dubai Investment Park. With increased connectivity, strategic positioning, and a surge in demand, Al Furjan is poised to become a prime location for investors and homeowners alike, promising substantial returns and a vibrant lifestyle. As the development progresses, stakeholders can expect a significant uplift in property values, making it an opportune time to invest in this burgeoning area.