Experts are predicting a jump of 15% in the off plan property prices of UAE. Specifically Dubai South and its neighbouring areas. The Gulf Today also reported that the expansion of Al Maktoum International Airport which is the largest in the world will boost the prices of off plan projects in UAE. It is, therefore, crucial to investigate the phenomenon and how it will affect the prices of the off plan property to make the right decision at the right time.
Features of New Airport that will drive the prices of off-plan projects in UAE
The demand for all types of real estate will increase with the new airport in the United Arab Emirates. A proactive approach to the analysis of the Dubai property market will benefit the buyers in making the sale purchasing decisions for the off plan residence in Dubai.
Increasing Demand for the property
As the Emirates is ready to build an entire city around the new Airport in Dubai South will increase the demand for housing for about a million people. The increased demand for the property will lead to the increased prices of the new off-plan projects in Dubai.
As Dubai South is already one of the most sought-after areas where buyers are rushing to buy exclusive villas and townhouses, the houses are ranked second by Betterhomes in regard to demand in the Q1 of 2024.
Experts Opinion – What Experts Are Saying about the Impact of New Airport on Property Prices
According to the head of secondary sales:
“rise in property prices can be expected within a year, potentially reaching 10-15 per cent, driven by anticipation of future growth initially.”
She added:
“A more significant price increase is likely closer to the completion of the new passenger terminal at Al Maktoum International Airport. This is when the full impact of the airport’s expansion and business activity becomes more tangible,”
Durrani who is Knight Frank’s head of research for Mena said:
“The reactivation of the Palm Jebel Ali late last year is a further signal of the rising prominence of southwestern Dubai. It is a focal point for economic activity. How the supply story plays out will be one to watch. Particularly as Dubai is only set to see 22,000 homes a year delivered over the next five years, well below the 70,000 units needed each year to accommodate a population of 7.8 million by 2040. Purely on the basis of the expected demand-supply imbalance, prices in the medium-long term are likely to experience sustained upward pressure, especially around Dubai South,”
Strategic Location
Property prices in different areas of the UAE will see an upward trend due to the fact that the new Airport development will increase the number of newly launched projects.
Considering specifically the property of Dubai South and Downtown Dubai, it has been found that the proximity to Abu Dhabi and the exceptional size of townhouses and villas are increasing the demand.
The strategic location of Dubai South includes proximity to the Expo 2020, Multinational Corporation, Landmark Group, Noon, FirstCry, and Siemens. The operations of these firms have started in Dubai.
Job Opportunities – People are Herding
The new airport will create more job opportunities and attract a large number of residents. With the increased number of individuals, there is a high probability that the new upcoming off plan projects in Dubai will increase.
The launch of more projects will lead to the increased price of the property. According to the Svetlana Vasilieva, head of secondary sales at Metropolitan Homes said:
“A more significant price increase is likely closer to the completion of the new passenger terminal at Al Maktoum International Airport. This is when the full impact of the airport’s expansion and business activity becomes more tangible”
Best Investment opportunity – buy off plan projects in UAE ASAP!
Off plan residences in Dubai are exceptional and offer exclusive opportunities for investors. With the development of the new Airport, the market has positioned itself as one of the best places to invest regionally and globally.
Dubai South off plan project was launched in 2006 as the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum. Currently, this property is offering a Return on Investment (ROI) of 7.73%. It is comparatively higher than other projects due to the infrastructure and of course new Airport development.
Conclusion
The development of the new Airport in the region of Dubai South will increase the price of other off plan projects in UAE. After the completion of the Airport, and being operational with full potential, the prices will further skyrocket. This is due to the increase in demand for property as the number of buyers will increase amid travelling. According to the real estate experts now is the best time to invest in this property due to the exclusivity and services.
