Over the past few years, Dubai South has moved from “up-and-coming” to one of the most closely watched real estate markets in the emirate. Backed by the expansion of Al Maktoum International Airport, the legacy of Expo City Dubai, and new infrastructure such as the Dubai Metro Blue Line, the community is rapidly evolving into a full city in its own right.
The key story is in the numbers: prices are rising, transaction volumes are surging, and yields remain attractive compared to more mature parts of Dubai.
Where Dubai South Sits in the Wider Dubai Cycle
Dubai as a whole is in the middle of a strong, multi-year upcycle. According to several market studies, average residential prices in Dubai have risen by more than 50% over the last decade, with the citywide average price per square foot climbing from roughly AED 1,000 to over AED 1,500 between 2014 and 2024.
Dubai Land Department’s 2024 annual report shows that total real estate transaction values grew by about 20% year-on-year, underlining sustained investor demand and liquidity in the market. Within this broader boom, Dubai South has emerged as one of the key growth corridors, still priced below the city average, but catching up quickly.
What the Data Says About Dubai South Prices
Apartment Prices and Growth
Portal data and transaction records give a clear picture of upward momentum:
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Average price per square foot in Dubai South is currently in the range of AED 1,350–1,450/sqft, depending on bedroom type and location.
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Property Finder’s price insights indicate an average sales price of about AED 1.08 million (up 15% year-on-year), and an average price per square foot of around AED 1,413 (up 19.7% year-on-year).
On the transactional side:
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Over the last 12 months, more than 5,100 apartment sales were recorded, a 78% increase in volume.
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The average transacted price rose to about AED 1.07 million (+12.7% YoY), with an average realized price of AED 1,461/sqft.
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Off-plan apartments have been particularly active, with over 4,300 off-plan sales in the last year (up 124% in volume), and average prices rising by around 6–7%.
In simple terms: more units are selling, at higher prices, and buyers are increasingly comfortable committing off-plan, a strong sign of confidence in the area’s future.
Townhouses and Villas
Dubai South’s villa and townhouse districts (especially South Bay and Emaar South) have also seen solid appreciation:
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Average villa prices by bedroom type now range roughly between AED 1,220 and AED 1,600 per square foot.
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A recent market snapshot puts South Bay villas in the AED 1,300–1,450/sqft range.
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One independent report notes that Dubai South has seen around 37% growth in price per square foot recently, with current averages near AED 1,479/sqft and gross rental yields of about 7.5%.
Rental Yields: Income Today, Growth Tomorrow
Dubai South is not just a capital-appreciation story; it is also a yield play.
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For apartments, Property Finder data shows rental yields around 5.7% on average.
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Some sub-communities can reach yields in the 6–8% range.
This combination of above-average yields and below-city-average price per square foot is exactly what many data-driven investors look for: strong current income with room for further price compression as the location matures.
Why Prices Are Rising: Structural Drivers
The growth in Dubai South is not speculative; it is being pushed by several long-term, structural factors.
A 145 km² Master-Planned “Aerotropolis”
Dubai South is a 145 square kilometre master-planned city, designed to integrate residential, logistics, aviation, industrial, and commercial zones, with a target of around 700,000 residents and 65,000 jobs at full build-out. That scale means the area is a new urban centre that captures its own demand for housing, offices, and retail.
Al Maktoum International Airport: The Future Global Hub
The single most important driver for long-term value is the transformation of Al Maktoum International Airport (DWC):
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Dubai has approved a new terminal investment of roughly AED 128 billion (USD 34–35 billion) at DWC.
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The airport is planned to be the largest in the world, with capacity for up to 260 million passengers annually.
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Major passenger operations will gradually shift from Dubai International (DXB) to Al Maktoum, concentrating aviation-driven employment and demand directly in Dubai South.
Expo City Dubai and the 2040 Urban Master Plan
Expo City Dubai, built on the Expo 2020 site, has been repositioned as a permanent innovation-focused, green city and forms a key pillar of the Dubai 2040 Urban Master Plan. The site is being developed as a mixed-use district, creating an ecosystem where people can live, work, study, and relax, supporting steady, long-term housing demand in surrounding communities.
The Dubai Metro Blue Line and Enhanced Connectivity
The Dubai Metro Blue Line, a 30 km, 14-station extension recently awarded in a AED 20.5 billion contract, will connect Dubai Creek Harbour and Festival City directly to Dubai South and Expo City.
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This reduces perceived distance from central Dubai.
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Supports higher density and higher values around future stations.
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Transit-oriented communities historically see above-average price appreciation once stations are delivered, as accessibility improves.
Short-Term Volatility vs Long-Term Thesis
Fitch Ratings has warned of a possible 10–15% correction in Dubai residential prices through 2025–26 due to the large pipeline of new units. However, Dubai South may remain relatively resilient even in a softer citywide environment:
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Price point – Dubai South still trades at a discount to prime coastal and central districts, making it more affordable for end-users.
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Real demand, not just speculation – Aviation, logistics, manufacturing, and Expo-related jobs will continue to generate organic housing demand.
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Infrastructure already under construction – The airport expansion, Blue Line, and Expo City are multi-decade state-backed projects, which tend to push long-term land values higher.
For investors with a 5–10 year horizon, short-term price fluctuations are less important than entering at a rational price in a district where the fundamentals are improving every year.
Why Dubai South Still Has Room to Run
Looking purely at the data, Dubai South today offers:
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Rising prices, with double-digit growth in average transacted apartment prices.
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Surging transaction volumes, especially in off-plan projects.
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Healthy rental yields in the 5.5–7.5% range, higher than many mature prime locations.
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Transformational infrastructure (world’s future largest airport, Metro Blue Line, and Expo City Dubai), locked in by long-term government strategy.
All of this suggests that Dubai South is still in the early to middle stages of its growth curve. Prices have already moved, but they are doing so from a relatively low base compared to central Dubai, and the real story will play out as airport capacity, metro connectivity, and employment numbers ramp up over the next decade. For data-driven investors looking for a balance of current income, capital appreciation potential, and long-term city-building fundamentals, Dubai South deserves a serious place on the shortlist.
Secure your position in Dubai's next urban center. Don't miss the window of opportunity in Dubai South's growth cycle. Contact fäm Properties today for a data-driven consultation to balance your current income needs with long-term capital appreciation potential.