Dubai South Property Sales Beat 2025 Record; Studios Dominate Transactions, Rents Double

Dubai South's residential property market has seen a significant boom, with sales exceeding its full-year 2025 record in just eight months. Between January and August 2026, the area recorded 12,428 residential transactions, a 27% increase over the 9,788 homes sold throughout all of 2025.

Sales value reached AED 15.9 billion in the first eight months of 2026, representing 81% of last year's total of AED 19.6 billion. ANAROCK Research indicates that if the current pace continues, 2026 is set to be another record year for the district.

Shifting Market Dynamics

The market is increasingly driven by demand for smaller units, with studios dominating transactions. Studios accounted for 45% of residential sales from January to August 2026, a substantial rise from 19.5% in 2025. One-bedroom homes made up another 31%, bringing the combined share of studios and one-bedroom units to approximately 76% of all transactions. Overall, apartments represented 94.5% of residential sales volume during this period.

While the average residential price per square foot increased from AED 650 in 2020 to AED 1,656 in January — August 2026, the average transaction value actually fell to AED 1.28 million. This decrease from a 2023 peak of AED 2.57 million is attributed to the prevalence of smaller, more affordable units, which can have higher per-square-foot prices but lower overall costs.

Off-Plan and Rental Market Growth

Off-plan properties are a major driver, making up 94% of residential transaction volume in the first eight months of 2026, up from 73% in 2020. This highlights a strong buyer commitment to new developments.

The rental market in Dubai South has also experienced significant growth, with average annual rents more than doubling from AED 34,534 in 2020 to AED 82,063 in January — August 2026. Rental transaction volume quadrupled during the same period, indicating a robust and active rental sector.

Future Supply and Airport Expansion

Dubai South is set to receive a substantial influx of new housing, with 38,116 units scheduled for handover between 2027 and 2029. This is a significant increase compared to the 10,813 units delivered from 2016 to 2026, with deliveries projected to peak at 16,094 units in 2028. Approximately 85% of these under-construction units are apartments.

Long-term growth for Dubai South remains tied to the Al Maktoum International Airport expansion, which is designed to accommodate 260 million passengers annually and is slated for its first operational phase in 2032. This AED 128 billion project is expected to create 500,000 jobs and house one million residents at full build-out, driving future housing demand.