3 August 2017
The South Remembers
Dubai South, formerly known as Dubai World Central, is designed to the be the world’s largest aerotropolis. The community is an economic zone that is centered around Al-Maktoum International Airport, which will cater to various business activities such as logistics, aviation, commercial and humanitarian. Originally, launched in 2004, the project development deaccelerated in the wake of the 2008 financial crisis. In 2013 Dubai won the bid to host the World Expo 2020 and Dubai South was chosen as the location for the expo site, reinvigorating the interest in the community.
Over the last couple of years, we have witnessed an exponential growth in transactional activity. A comparison of 2016 against the first 7 months of 2017 reveals an increase of more than 250% and 76% of the overall transactions conducted in this area have been below the AED 1 million mark, indicating that developers have been able to cater to this “sweet spot” of investor demand.
Whilst currently the area is being mostly observed as a repository for affordable housing, we expect the price points to change as infrastructure work accelerate and an increasing number of developers cater to this segment.