The announcement of the extension to Al Maktoum Airport will undoubtably have a positive impact on property prices for a number of reasons.

With plans to be the largest airport in the world upon completion, the New Al Maktoum Airport is an integral part of Dubai's strategy to become a global aviation hub. With the capacity to handle hundreds of millions of passengers and millions of tonnes of cargo annually, the airport's expansion will also encourage many infrastructural developments in its vicinity. This, in turn, will lead to increased interest from real estate developers and investors, thus contributing to the transformation of the surrounding residential landscape.

Increased Demand: The influx of tourists, visitors, and professionals linked to the airport will create a higher demand for housing. As a result, apartments and villas in the area will become more attractive to investors and potential residents.

Infrastructural Upgrades: The developments around the airport will be conducting necessitated infrastructural upgrades, including improved transportation networks, retail and commercial space, and public amenities. These upgrades have further increased the desirability of living in these areas, driving up the prices.

Mixed-Use and High-End End Residential Communities: Many real estate developers have already seized the opportunity to create mixed-use and high-end communities that offer a blend of residential, commercial, and recreational spaces. These communities cater to the needs of modern living and attract a diverse range of residents, contributing to increased demand and subsequently higher prices. Examples of this from top-quality and reputable developers in the area are Majid Al Futtaim’s Tilal al Ghaf and Emaar’s Oasis project, both of which are successfully sold-out villa communities, surrounding manmade crystal lagoons, and attracting end users and investors alike to the previously unused land.

Investor Interest: The prospect of a steady stream of tourists, business travellers, and long-term residents will entice local and international investors to allocate their resources in the area. This investor interest will again directly impact prices by driving demand and creating a competitive real estate market.

Upward Price Trend: Over the past two years specifically, the trajectory of prices for communities such as Emaar South, which is the most notable community in the vicinity of the new Al Maktoum Airport terminal, has already exhibited an upward trend. While fluctuations due to market conditions do occur, the overall trajectory for this community remains positive, and this has attracted many more developers to the area, reinforcing the influence of this anticipated announcement on the local real estate market.

For all the above reasons, the latest announcement to expand the Al Maktoum airport will have a huge impact on both the supply and demand of residential and commercial units in the vicinity of the airport. We expect a lot more project launches and new developments to be announced in the area, and the prices of properties will likely increase in line with the airport’s development.