Airport Expansion and the Future of Dubai South
    Regulatory UpdateOctober 19, 20143 min read

    Airport Expansion and the Future of Dubai South

    Plans to expand Al Maktoum International into one of the world's largest airports could reshape the south of the city. What it means for property.

    Senior Investment Advisor

    CFA charterholder with expertise in alternative investments. Fatima has structured over AED 5 billion in real estate investment vehicles for institutional clients.

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    Dubai International is now one of the busiest airports in the world for international passengers, and the city has announced ambitious plans to expand Al Maktoum International Airport at Dubai World Central into an even larger hub. Over the coming decades, aviation activity is expected to shift increasingly towards the south of the city.

    Why it matters

    • Aviation growth: Emirates and other airlines continue to expand.
    • Jobs: airports create employment in aviation, logistics and services.
    • Logistics: combined with Jebel Ali port, a major trade hub.
    • Expo 2020: the site is close to the airport.

    Effects on property

    As the airport grows, demand for homes near it is likely to increase, particularly for workers in aviation and logistics. Communities in Dubai South and nearby areas could benefit.

    Timing

    Airport expansion is a long-term project, developed in phases over many years. Investors should plan for a gradual effect rather than an immediate one.

    Risks

    Large projects can be reprioritised or delayed. Noise and flight paths should also be considered when choosing homes near airports.

    Opportunities

    Investors with a long horizon may find opportunities in areas positioned to benefit from the airport and Expo, provided they choose quality projects.

    Logistics, jobs and housing

    Airports create large numbers of jobs beyond aviation itself: logistics, cargo handling, maintenance, hospitality, retail and security. Al Maktoum International, combined with Jebel Ali port and nearby free zones, could become one of the largest employment centres in the region. Many of these jobs will be filled by workers seeking affordable housing within a reasonable commute. Communities in the south of the city that offer apartments and townhouses at accessible prices may benefit as employment grows. Higher-value villa communities nearby may attract managers and executives. Investors should watch the pace of employment growth in the area, since housing demand will follow jobs rather than announcements.

    Our view

    Airport expansion underlines Dubai's long-term commitment to aviation. We see the south of the city as an important growth area over the coming decade.

    AviationDubai SouthInfrastructure