DUBAI SOUTH PREDICTED TO TRANSFORM AFTER $35bn AIRPORT ANNOUNCEMENT
▶ Al Maktoum expansion likely to attract millions of new residents to surrounding area, says property expert
Plans for a new Dh128 billion ($34.8 billion) terminal will result in much more than just a new look airport in Dubai, experts have said.
The entire make-up of the city could be transformed once the plans for Al Maktoum International come to fruition.
When Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, announced the project on Sunday, he said “an entire city” would be built around the airport.
Property and education experts told The National the project had the potential to transform life for many in the emirate.
Property experts agreed that the announcement of the airport project had put the Dubai South area firmly back into the spotlight after Expo 2020 Dubai.
“I expect to see infrastructure improvements and increased commercial developments including new hotels and dining options which could attract millions to relocate to the surrounding areas,” said Paul Kelly, operations director at estate agency Allsopp and Allsopp.
“Additionally, with the Expo site being relatively close by, the continuing redevelopments and communities that are being built around the area, we can expect to see a growing attraction and demand in the community.
“I think most people in the market for home ownership or investment will be taking a renewed look at Dubai South this week.”
He predicted that property prices in the area would rise as the airport project gets closer to completion.
“We expect to see property prices rising in Dubai South and the surrounding areas in the years to come,” said Mr Kelly.
“Over that time, there may be some ups and downs, as we would expect in any market, but the trajectory over 10 years will be upwards with all the developments, infrastructure and entertainment venues.
“It’s only going one way and that is why, from this week onwards really, I expect there will be a lot of market activity in these areas.”
Once complete, Al Maktoum International Airport will be able to serve up to 260 million passengers.
It was projected to be five times the size of the current Dubai International Airport, ranked as the top globally for international passenger traffic.
“The government has already said that they are expecting one million to live and work in the area close to the new airport, so that must mean more properties [will be built] to address the demand,” said Steven Leckie, associate director for off-plan and investment with property firm Haus & Haus.
The news of the investment in Al Maktoum airport means that similar development in the surrounding area is inevitable, he added.
Mr Leckie predicted there would be significant investment in new properties in the Dubai South area, but this does not necessarily mean that those already living in the area can expect an immediate surge in rental prices.
“I am sure we will see some new communities; we already know that Damac Lagoons 2 will be launched there shortly,” he said.
“I expect people will not be asked to pay more to live there in the short term, as the new airport is a massive project and will take years to complete.”
It was only at the start of this month that Dubai South Properties launched the fourth phase of its South Bay waterfront development after selling out the first three phases, which includes more than 600 villas. Education bodies in Dubai are also keeping a close eye on developments in the Dubai South area, as they expect it will experience major growth in the coming years.
“As Dubai South emerges as a vibrant urban hub adjacent to the airport, Taaleem is collaborating with strategic partners and government entities to develop additional educational facilities post-2027,” said Sam Truman, chief operating officer of Taaleem schools group.
“This proactive planning aims to accommodate the growing residential demands of this swiftly developing area.”
It will not just be residents of in Dubai South who reap the benefits of the community’s expansion, but also those living nearby, said the head teacher of a school in neighbouring Dubai Investments Park.
“The announcement about the new airport will only increase the number of families coming to Dubai,” said Leigh Girven, head teacher of Greenfield International School, who expects a sharp rise in the number of pupils in years to come.
“We are looking forward to welcoming those new families and we are making sure that our school can meet the needs of those students when they arrive.”
The airport’s development will attract new opportunities for businesses to thrive in the area, she said, which would create opportunities for work experience and other projects for pupils.
The investment in Al Maktoum means similar development in surrounding areas is inevitable, experts say