Dubai South Residential District: Hot Investment Spot on the Rise?
Dubai South Residential District in Dubai South has emerged as one of the promising investment areas. Formerly called Dubai World Central (DWC), Dubai South sits in a prime spot next to Al Maktoum International Airport, set to be the world’s largest when completed.
Sure, living next a massive airport (which won’t be finished until 2030) might not appeal to everyone. But the Dubai South location offers plenty of compelling reasons for investors to take notice.
In this guide, we delve into how investors are responding to the area’s growth and whether Dubai South city is a good choice for those who want to make the most of its strategic location and ongoing development.
Understanding Dubai South Location
This 145-square-kilometer urban development connects to major highways and Al Maktoum International Airport, making it an increasingly attractive location for both residents and businesses.
Dubai South Residential District – Benefits
The strategic positioning of Dubai South residential district offers a number of advantages:
- Direct access to major highways
- Close to Dubai South Business Park (office area)
- Close to Dubai Investment Park (office area)
- Easy reach to Dubai Expo 2020 site (where exhibitions take place)
- Connection to Al Maktoum International Airport
- Proximity to Jebel Ali Port
- Proximity to Dubai Parks and Resorts and Legoland (entertainment hub)
- Landmark to Dubai Airshow
- 50 minutes to Abu Dhabi Airport
Is Dubai South Good for Investment?
Looking at the latest Property Finder statistics, Dubai South is showing some promising trends over a 1-year period:
For Dubai South Apartments:
- The price per square foot increased by 7.78%
- Average property price increase by 3.47%
- Gross rental yield is at 7.78%
For Dubai South Villa:
- The price per square foot increased by 25.22%
- Average property price decreased by 12.48%
- Gross rental yield is at 4.74%
Tip: You can also search for a particular building on Property Finder to view their number of sale transaction and performances.
Here is an example for “Emaar South”:
What are the Best Areas in Dubai South for Rental Yield?
Properties closer to Expo 2020 and Dubai Investment Park typically show higher yields due to stronger rental demand from working professionals.
| Project | Developer | Location | Average Price Change (1-Year Period) | Gross Rental Yield* |
|---|---|---|---|---|
| South Bay Dubai South | Dubai South Properties | Dubai South Residential District | 24.04% | NA |
| Mag 5 Dubai South | Mag | Dubai South Residential District | 13.80% | 8.76% |
| Celestia Dubai South | DAMAC | Dubai South Residential District | 24.53% | 8.69% |
| South Residence 1 Dubai South | NA | Dubai South Residential District | 84.43% | 8.68% |
| The Pulse Dubai South | Dubai South Properties | Dubai South Residential District | 3.05% | 7.72% |
| Urbana Dubai South | Emaar | Next to DWC Airport | 29.55% | 5.45% |
| Emaar South | Emaar | Next to DWC Airport | -12.03% | 5.18% |
| Golf Link Emaar South | Emaar | Next to DWC Airport | 18.12% | 4.61% |
Pros and Cons to Dubai South Developments
The Good Stuff
Investors are responding positively to Dubai South properties, and for good reason:
- Dubai South properties sales are rising
- Property prices are appreciating
- Rental yields is looking attractive
- Affordable entry point
- Lots of room for long-term growth
- The Dubai government is fully behind it
Things to Keep in Mind
Right Now:
- Still developing, with many amenities and facilities not all there yet
- Can feel isolated from central Dubai (25-30km from downtown)
- Limited public transportation choices
- Fewer established schools, hospitals, and shopping areas compared to mature areas
For Your Investment:
- This is more a longer-term investment as the Dubai South city continues to develop
- Potential oversupply risk affecting resale and rental yields
- Some projects and infrastructure may take longer than advertised
Lifestyle Challenges:
- Less vibrant community life compared to established areas
- Expect construction noise and dust for awhile
- You definitely need a car
- Not many restaurants and entertainment nearby
- Limited landscaping and greenery in newer areas
Is Dubai South a Good Investment?
Dubai South location is definitely one to watch right now. Overall, the sales are climbing, property prices in Dubai South City are on the rise, and rental yields are looking attractive. Investors are interested in the area, drawn by its strategic location, on-going development, and potential for future growth potential.
Sure, some people might hesitate to call it home because of the potential noise from the nearby major airport. But if you’re wearing your investor hat, properties in Dubai South Residential District has a lower entry price point and can get you higher appreciation and rental yield compared to other prime areas in Dubai.
