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Why Dubai South Is the Ultimate Choice for Premium Lucrative Investments?

With the growing importance of the southern part of Dubai, it has emerged as a prime investment opportunity. With its affordable and budget-friendly developments, the community has gained momentum and become a premium investment option for investors.

Nisha Aggarwal
Nisha Aggarwal, Content WriterBinding words magically into effectual content.
Why Dubai South Is the Ultimate Choice for Premium Lucrative Investments?

When His Highness Sheikh Mohammed Bin Rashid Al-Maktum launched the Dubai Economic Agenda (D33) he said, the fact that inspired him was Dubai’s economic path over the next decade made way for those aware of their wants and requirements. With his powerful vision, Dubai is moving aggressively to strengthen its position as a leader in sustainable development and emerging as a role model for cities worldwide.

Overview of Dubai’s Real Estate Market

Dubai's real estate market is not just growing because people feel positive about it, there are many factors such as the booming tourism, growing population, infrastructure, and safety and security. Dubai has devised a plan to grow its global trade connections by adding 400 new cities to its network. The strategy is aimed to position Dubai as a key player in international trade and business.

A Quick Glance at the Dubai Economic Agenda (D33)

After Dubai's leaders announced the Dubai Economic Agenda, also known as “D33”, the economic stats have shown strong business growth. D33 is a massive economic plan worth 8.7 trillion launched to double Dubai's foreign trade and make it one of the top four financial hubs in the world right after New York, London, and Singapore. The plan is leading up to 2033 when Dubai will celebrate 200 years since it was established. Dubai's future is looking brighter than ever.

History - Rise from Deserts to a Global Giant

History - Rise from Deserts to a Global Giant

  • As we dive deeper into the history of Dubai, its story is nothing short of an inspiring tale. The city rose from the desert to become a global symbol of progress and innovation. 
  • Dubai has shifted its focus to new areas from one land parcel to another, creating neighborhoods and landmarks that define its magnificent growth.
  • It all started in the 1960s when Dubai took its first step in real estate development, from old Dubai where iconic landmarks like Dubai International Airport and Mina Rashid Port laid the foundation for the city's growth.
  • Districts like Palm Jumeirah started to take shape to establish spaces for both living and businesses. 
  • From early 2000 to 2010, Dubai introduced iconic developments like the Burj Al Arab, Emirates Hills, Burj Khalifa, Downtown Dubai, and Internet City setting new standards for luxury and innovation. 
  • Each development in Dubai is transforming into a global hub and attracting attention from all corners of the world. Now, transforming the south of Dubai, a massive development with big promises for the future.

Dubai South - Evolution

Dubai South is the largest master plan project in the city having exceptional returns on investment and capital appreciation.

  • Back in 2004, this area was named “The Center of Tomorrow”, where the Dubai government announced plans to create Dubai World Central.
  • Later in 2015, Dubai World Central got a new name “Dubai South” because it was not just about an International Airport, aviation, and logistic center, the area was evolving to become a full-on urban community with homes, offices, shops, factories, and recreational spots.
  • The main highlight is the Al Maktoum International Airport, designed to be the world's largest airport for passengers and cargo. His Highness Sheikh Mohammed has recently approved the designs for a new Passenger Terminal at Al Maktoum International Airport, with construction starting at a massive cost of 128 billion dirhams. 
  • This is not just a huge achievement for Dubai, it is a game changer for the UAE as a whole.

The Future of Housing

Dubai South, the city's largest urban master plan is focused on aviation, logistics, and real estate and is set to experience a huge demand for housing. Its prime location near the airport makes it a hot spot for people and businesses. It is expected to become home to 1 million people in the coming years, reflecting the incredible vision of Dubai’s leadership, and positioning it as a global leader in aviation. The government's goal is to solidify Dubai's reputation as the aviation capital of the world. Projects like the Expo 2020 have boosted Dubai South’s reputation as a global hotspot for business, tourism, and innovation. Expo 2020 welcomed more than 25 million visitors from around the world but what is even more exciting is that after Expo 2020 was over, the government decided to turn it into a whole new community.

The government incorporated the Pavilion and infrastructure to create vibrant areas full of life and opportunity. The south of Dubai has a very strong impact on the economy with key players like Al Maktoum International Airport Jebel Ali Free Zone, and Export 2020. Every part of Dubai South is driving growth and becoming an economic powerhouse.

Growth and Job Opportunities

Dubai South is creating thousands of jobs and is set to contribute 35% of the GDP to Dubai's economy. This area is shaping the future of Dubai by growing consistently and creating endless opportunities. Currently, the population of the southern part of Dubai is approximately 250,000 but it is set to grow to around 1 million residents in the coming years.

Along with this growth, the area is expected to generate over 500,000 jobs creating a thriving business ecosystem supported by more than 5,000 companies. As per the available database, by the end of 2021, Dubai South already had 2,848 employees.

Locational Benefits

Its location near Abu Dhabi, the UAE's capital opens doors for tourism trade and employment, and with the upcoming Etihad Rail Project, the area will offer seamless connectivity across the UAE and GCC countries making it a hotspot for businesses and residents. At the heart of Dubai South, Al Maktoum International Airport is capable of handling 260 million passengers and 16 million tons of cargo annually making it a hub of aviation, logistics, and trade offering massive potential for businesses and investors.

Jebel Ali Free Zone, a flagship Free Zone by DP World started with just 19 companies in 1985, it grew to over 500 by 1995 and as of now, it is home to more than 9,500 businesses including over 100 Fortune global companies. This growth is driven by its central location and proximity to Jebel Ali Port Al Maktoum International Airport and the legacy of Export 2020 Dubai.

The trade pact of 100 billion dollars between India and UAE, is a part of the make in India and D33 initiative with over 1,500 showrooms expected to open in 2026, warehouse and retail ecosystem opening doors for Indian traders and suppliers to access Middle Eastern, African, and European markets through streamline Logistics. This project is highly anticipated and promising as the old trade partnership between UAE and India has already caused a surge in demand with the warehouse rents jumping by 26% annually reaching an average of 3,365 dirhams per square meter. To meet the demand, Dubai South is developing logistic facilities spanning over 24,000 square meters set to be completed by year-end with its eight interconnected districts combining residential, commercial, logistics, aviation, businesses, humanitarian, exhibition, and Golf District zones.

Real Estate Investors Outlook

Dubai South stands out as a Visionary Urban Development for Real Estate Investors. It is more than just a promising location that has positioned itself as an ideal hub of global trade and business growth. Globally airports have been transforming areas into vibrant economic zones often called airport cities or aerotropolis leading examples like Amsterdam and Singapore have turned their surroundings into thriving hubs with hotels, offices, parks, shopping centers, and even tourist attractions.

For real estate, airports are more than just travel hubs they are a major boost to commercial and residential real estate. Whenever a new airport is announced it is often a game changer as the land prices near the site massively rise creating a ripple effect with improved connectivity, inflow of tourists and jobs, and increasing housing demand. Hotels, malls, and restaurants pop up to serve travelers and businesses making the area even more appealing. Properties near airport become a hotspot for investment, strong infrastructure, great social amenities, and rising demand making these areas perfect for capital appreciation with healthy returns. Whether residential or commercial real estate, it is clear that investing near the airport is always a smart move. It is a place where connectivity meets opportunity and real estate flourishes.

Prominent Communities

Prominent-Communites

Visionaries like Emaar, Nakheel, Dubai Holdings, Dubai South, and Expos Dubai are leading the way, joined by other key players like Majid Al Futtaim, Aldar, and MAK.

The existing communities in the south of Dubai that are driving opportunities for investors in this thriving region include:

Palm Jebel Ali - The second largest man-made island in the world by Nakheel, the same developer who has developed Palm Jumeirah, Dubai Island, and the World Islands. It is a $2 billion futuristic waterfront development in the Southern Coastal District of Dubai and part of the Dubai 2040 Urban Master Plan. Located closer to Dubai South Area, 25 minutes to Al Maktoum International Airport, and 20 minutes to Expo City, the community provides seamless connectivity. Palm Jebel Ali is designed like a palm tree similar to Palm Jumeirah but bigger and double the size of Palm Jumeirah. It spans across an area of 13.4 square km i.e., twice the size of Palm Jumeirah. This ambitious luxury waterfront living project will add 110 km of coastal line to Dubai and feature over 80 hotels and resorts setting a new global benchmark for waterfront communities. It consists of a trunk, fronds, a spine running through the middle, and a surrounding crescent. The difference here is that Nakheel has planned the space between the fronds more carefully making the waterfront experience feel more open with direct beach access to make movement smoother.

There are three main entry and exit points for hassle-free connectivity. When Nakheel launched Palm Jebel Ali, they released 5 and 6-bedroom beachfront villas starting from around 18 million dirhams, 6 and 7-bedroom villas starting from 31 to 32 million dirhams, and plots at the top of the fronds ranging between 38 to 68 million dirhams. Since then Nakheel has launched new phases of premium establishments including its latest release 5 and 6-bedroom villas priced from 20 to 24 million dirhams.

Expo City Dubai - The community’s proximity to Al  Maktoum International Airport makes it one of the most futuristic promising investment opportunities. Expo 2020 has completely changed the dynamics of Dubai South and it is designed to be a car-free city making it super friendly and environmentally sustainable where 25 to 30% of the area is dedicated to parks and nature reserves giving it one of Dubai's highest green space ratio. The government's vision and ready futuristic infrastructure make the area more promising. Located at the center, the main attractions include metro stations, the Dubai Exhibition Center, and the World Trade Center hosting all government and other Global events with entertainment zones, cultural events, shopping, dining, and much more. It is set to become a must-visit destination for tourists visiting Dubai. Expo City is already home to some of the biggest companies in the world like Seimens, Nestle, DP World, and Emirates Airlines implying more job opportunities. The community offers apartments, townhouses, and villas. Expo apartments are most centrally located near the exciting attractions, retails, and businesses with spacious layouts and come with a post-handover payment plan.

Prices start from 1,800 to 2400 dirhams per square foot offering 950 square feet for 1 bedroom starting from just 1.9 million dirhams whereas a 2-bedroom apartment with a size of 1300 square feet starts from approx 2.6 million dirhams and 3-bedroom with the size of 1,700 square feet starting from approx 3.3 million dirhams. It also has Lofts and Penthouses.

Emaar The Oasis - This ultra-luxury lagoon community spans over 8.5 million square meters and is a next-level community. Other than standard amenities like swimming pools, sports, and leisure, this community has a water body with massive Blue Lagoon beaches, a cycling track, and jogging trails with world-class facilities. It is designed for high-net-worth individuals and will be one of the most exclusive communities of the future in Dubai. The distinct features that make the community unique is that around 25% of the area is dedicated to green parks and open spaces and every villa is surrounded by stunning views of massive Lagoons, the Water Canal, and open parks. Emaar is historically known for developing and maintaining the best communities such as Emirates Hills, Dubai Hills Estate, and Arabian Ranches.

Starting from approx 12 million dirhams, Emaar is offering the largest 4, 5, 6, and 7-bedroom villas and mansions where the plot sizes are available from 8,000 to 35,000 square feet with a built-up area of 6,000 to 25,000 square feet.

Discovery Dunes - This is another one of the most exclusive and Dubai’s first private residential communities in Dubai South right opposite to Emaar South. This luxury residential community was founded in 1994 by Michael S Meldman’s Discovery Land Company. It has built over 35 high-end private residential communities across the USA, Latin America, Europe, and the Caribbean. The company is known for its celebrity luxury lifestyle communities in the world of real estate and its star-studded clientele such as business tycoons, Hollywood stars, and Global icons like Tom Brady, Michael Jordan, Justin Timber Lake, Bill Gates, and many others own properties in their communities. Located in the golf district, this project is a unique private community with an exclusive lifestyle. Discovery Land Company has chosen Dubai South for developing its establishments due to its advanced infrastructure, proximity to Al Maktoum International Airport, and spaces for premium developments highlighting the government's vision to elevate this area to the next level.

Dilemma of Dubai South and Emaar South

A residential Community developed in Dubai South which is part of the Dubai Aviation Corporation, it is the same entity that manages the nearby Al Maktoum International Airport adding even more value to the area. It is divided into two main neighborhoods, the first offers townhouses, and villas for affordable living and the second is South Bay, a new off-plan community that is centered around Lagoon, a feature that is becoming super popular in modern developments with its premium vibe. Currently, South Bay is selling apartments for approx 1.1 million dirhams.

On the other side, we have Emaar South right across from Al Maktoum International Airport spanning over 7 square kilometers. This is an 18-hole championship premium Golf Course Community similar to Dubai Hills Estate. When the townhouses and the villas were launched off-plan in 2019, prices were unbelievably low featuring semi-detached villas and apartments all surrounding the golf course wherein the prices are starting from 11,200 to 1,400 dirhams per square feet currently Emaar is selling apartments starting from approx 1.1 million dirham and due to its attractive price and good capital growth potential it is a popular choice among investors. Residential and Commercial projects including Dubai Expo Mall are set to be a game changer for the area. Emaar has recently launched Terra Heights Apartments located right next to Expo Mall and Metro station where you can buy a 1-bedroom apartment of approx 750 feet for 1.54 million dirhams and 2-bedroom apartments of 150 feet area from approx 2.1 million dirhams. These prices are incredible considering the location and the upcoming infrastructure of Expo City Dubai this is an amazing opportunity.

Emaar has also announced two new communities of townhouses and villas in the Dubai South area. This area will have a massive residential demand offering a golden opportunity for every real estate investor as land prices and construction costs will be on the rise in 2025 due to corporate tax and contracting companies' demands. Developers are shifting their focus to places like Dubai South because these areas offer better value, modern lifestyle, amenities, and innovative housing options to meet growing demand plus with the update in UAE Golden Visa requirements properties priced around 2 to 3 million dirhams give buyers a chance to qualify for a long-term residency adding a bonus for both investors and end users.

Tourism and Future Trends

Dubai's tourism is booming as the city welcomed about 16. 8 million tourist visitors till November 2024 which is a 9% increase compared to November 2023. According to Dubai's Department of Tourism, there is a massive visitor increase from Western Europe and South Asia which helped boost the demand for short-term rentals and grow even more interest in property investments.

Tourism has also helped boost the hotel market with average daily rates climbing to $235 and revenue per available room increasing to $190 both up by 6% year-on-year basis. As per KPMG's Destination Dubai Report, 66% of global high-net-worth individuals are looking to buy second homes in Dubai which is a huge indicator of the city's reputation as a top-tier real estate and lifestyle destination. Dubai's prime residential market is expected to experience continued growth in 2025.

Conclusion

Dubai stands out as a perfect mix of affordability, luxury, and a lifestyle that keeps attracting global investors and it is no surprise that Dubai is one of the top spots for real estate investments in the world. To enhance its opportunities and create a new web of premium developments, Dubai is all set to evolve Dubai South to make it one of the most popular and established developments providing world-class amenities and excellent investment opportunities with the highest rental returns and capital appreciation.

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