Communities and infrastructure that are already in place in the vicinity of Dubai South might also see improvements; better facilities and transit systems should raise real estate costs.

“Infrastructure improvements should drive demand for residential and commercial real estate in Dubai overall, resulting in a significant increase in property values in neighborhoods near the new airport terminals,” states Fibha Ahmed, Vice President of Real Estate Sales at Bayut & Dubizzle. Residential apartment sales in the area have increased by 30% in just the last 12 months, she claimed, with transaction sales values rising by almost 40%.

AED 1 billion, or roughly $272 million, has been exchanged for land since January 2024, according to data from the Dubai Land Department with regards to Abu Dhabi and Sharjah, the two of the nation’s top three real estate markets, what does this mean? Due to development masterplans, major investments in clean energy and technology, and initiatives to establish the UAE capital as the future financial hub of the region, the city has experienced significant growth in recent years.

Recent reports also indicate that the emirate is home to an increasing number of family offices and billionaires. Hedge funds, investment banks, and numerous wealthy people and businesses have established bases at and relocated to Abu Dhabi, causing the Abu Dhabi Global Market—the capital’s financial district situated on Al Maryah Island—to see astounding growth, according to Andrew Covill, Director at Henry Wiltshire International, who spoke to Construction Week Middle East and the real estate market has not overlooked this, according to Covill, the property market has reflected this migration with a dearth of high-quality villas and sea view flats and a sharp increase in demand and prices in the most sought-after areas, such Saadiyat and Yas Island.

The property market in the United Arab Emirates is currently competitive with the biggest cities in the world, but it still offers tremendous value. He said, “I think Abu Dhabi is the sleeping giant that will get a massive growth along with DWC an hour down the road.” The announcement that DWC will occupy this key position and be five times larger will greatly improve Abu Dhabi’s connection. Sharjah, which is next to Dubai, will also benefit economically from the expanded airport’s improved connectivity. The demand for reasonably priced housing in the vicinity of the airport, as well as in general, is expected to drive up property values and rental rates in important residential districts.

As more people and families look for more reasonably priced homes within commuting distance of the airport—especially those who work close to the aviation industry—Sharjah may witness a surge in demand for residential real estate. As a result, property values and rental rates in Sharjah’s most desirable residential districts may increase, according to Zaif Mohammad, CEO and Founder of Keyspace Real Estate, a broker that specializes in Sharjah real estate. From a business perspective, Mohammad anticipates that Sharjah’s advantageous location would draw in companies seeking to leverage the airport’s expansion and emphasis on logistics and cargo.

According to him, the city can see an increase in the demand for retail stores, office space, and logistical facilities, which might raise leasing costs and property values in commercial districts. According to Sachin Kerur, Managing Partner of Reed Smith Middle East, “it’s important not to view this as the announcement of just another construction project,” despite the fact that the announcement and the visuals are thrilling. Major infrastructure projects do, in fact, come with important side benefits. It will draw in investment and generate employment, which will boost economic growth. It will also raise a country’s level of continuous productivity. Furthermore, airport projects in particular have a strong history of encouraging technological advancement, dictating innovation, and aiming for the highest levels of sustainability to be incorporated into the design and management of the airport.

For Dubai, the UAE, and the larger region, this will offer a new dimension and era of greater connectivity, which will favorably impact the quality of life for inhabitants of the region and beyond. said Kerur.

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Source Construction Week

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