Dubai: Why some investors have paused real estate sales

Property owners in the Dubai South area and its surroundings have started raising prices on their properties, increasing their value by 25%. This change is due to the recent announcement about plans to relocate Dubai International Airport (DXB) to Dubai South. Investors in the market have noticed that many lots have become significantly more expensive, and some sellers have decided to temporarily withdraw from sales, anticipating further price increases.

Industry experts noted that since the announcement of the new Al Maktoum Airport in Dubai South, many property owners have started raising their prices by up to 25%. One investor who interacted with Naran Vish stated that the initial price of a three-bedroom apartment in Dubai South was 1.6 million dirhams, but after the news of the new airport, the price skyrocketed to 2 million dirhams.

Investors who put their properties up for sale in this area are reconsidering their decisions and prefer to hold onto their assets, hoping for further increases in value. According to Vish, the tenant occupancy rate in Dubai South has already exceeded 70%. He also noted that it is becoming increasingly difficult to find two or three-bedroom apartments on the lower floors, and as construction of the airport begins, this rate is expected to rise further.

Last week, the government announced the relocation of all operations from Dubai International Airport (DXB) to the new Al Maktoum Airport in Dubai South, which has a cost of about 128 billion dirhams. The new airport will be able to serve 260 million passengers a year and will completely take over the functions of DXB within 10 years.

Angelika Egoshchin, founder and managing partner of Real Estate Blondies, noted significant changes in the market following the announcement of the airport. Sellers are postponing their sales, hoping for price increases. Investors have started looking for properties that promise long-term benefits from the anticipated infrastructure development.

Angelika Egoshchin added that property owners in significant locations, such as Dubai South, Sheikh Mohammed bin Zayed Road, and Emirates Road, have started to request higher prices. There is a noticeable overall trend towards price increases, although the specific percentage increases may vary.

Faruk Said, the CEO of Springfield Properties, noted a clear trend that investors prefer to hold onto their properties in the Dubai South area, anticipating that the new airport will act as a catalyst for unprecedented growth in real estate prices. Said claims that this area will soon undergo remarkable changes, prompting clients to postpone sales in order to take advantage of future benefits.

Property owners in key areas, such as Dubai South, along major transport arteries, are anticipating a price increase, expecting a short-term rise of about 10% and a long-term increase of 20-30%. They are carefully planning their actions to capitalize on the growing demand driven by such infrastructure projects. In particular, there is a noticeable increase in interest in properties that are under construction.