Dubai South has experienced a substantial increase in residential property activity in the first eight months of 2026, with transaction volumes surpassing the full-year total for 2025 by 27 percent. According to a recent market report, the area recorded 12,428 residential transactions between January and August 2026, compared to 9,788 sales for the entirety of 2025.
The total value of residential sales during this period reached Dh15.9 billion, accounting for 81 percent of the Dh19.6 billion recorded in 2025. These figures represent the highest annual transaction volume since the report began tracking the market in 2020. Over the longer term, residential sales value grew dramatically from Dh720 million in 2020 to Dh19.6 billion in 2025, with transaction counts rising from 672 to 9,788.
The data also shows a clear shift in buyer preference towards smaller units. Studios and one-bedroom apartments now constitute roughly three-quarters of all residential sales. Studios alone made up 45 percent of sales in the first eight months of 2026, more than doubling their 19.5 percent share from 2025, while one-bedroom units accounted for 31 percent. Overall, apartments represented 94.5 percent of transactions, a significant increase from 31 percent in 2020.
Despite this trend towards smaller homes, average prices per square foot have climbed from Dh650 in 2020 to Dh1,656 in early 2026. However, the average transaction value decreased to Dh1.28 million from a peak of Dh2.57 million in 2023, reflecting a larger proportion of more affordable, smaller apartments in the market rather than a broad price correction.
Off-plan properties dominate Dubai South’s residential sales, making up 94 percent of transactions in 2026, compared to 73 percent in 2020. This underscores the area’s reliance on new project launches, as the ready-property and secondary markets remain relatively undeveloped. The secondary market accounted for less than 6 percent of sales during this period.
The residential rental market in Dubai South has also expanded significantly. Average annual rents more than doubled, rising from Dh34,534 in 2020 to Dh82,063 in the first eight months of 2026, while rental transaction volumes quadrupled. In 2025, gross rental yields averaged 3.9 percent across all residential property types, with apartments yielding 4.3 percent, townhouses 3.4 percent, and villas 3 percent. These figures exclude service charges, vacancy periods, and transaction costs.
Dubai South’s growth is closely linked to the ongoing expansion of Al Maktoum International Airport, a Dh128 billion project approved in April 2024. The expansion aims to increase the airport’s capacity to handle 260 million passengers and 12 million tonnes of cargo annually, with the first operational phase expected by 2032. The development of Dubai South spans 145 square kilometers and is planned to accommodate approximately one million residents and 500,000 jobs upon completion.
Commercial property activity in Dubai South is also robust. Commercial transaction values rose from Dh60 million in 2020 to Dh5.46 billion in 2025, with land purchases representing 97 percent of the total. During the first eight months of 2026, developers acquired an additional Dh2 billion worth of land, indicating ongoing interest in new residential and commercial projects.
Looking ahead, 38,116 residential units are scheduled for delivery between 2027 and 2029, more than three and a half times the number of homes delivered between 2016 and 2026. The highest volume of handovers is expected in 2028, with about 16,094 units. Apartments make up 85 percent of the pipeline, compared to 59 percent of existing ready stock. Market observers caution that this concentrated delivery could test demand absorption and potentially pressure gross rental yields if property values rise faster than rents.
Based on current sales momentum, Dubai South’s full-year residential sales value in 2026 could reach Dh23.9 billion, surpassing previous annual totals. However, this projection is directional and contingent on ongoing market conditions. The report anticipates that smaller apartments will continue to drive residential demand, while the secondary market develops gradually alongside the completion of off-plan projects.