According to a report by the consulting company Anarock, housing sales in Dubai South in the first eight months of 2026 exceeded any previous year's figures, reaching 12,428 transactions. This represents a 27% increase compared to the 9,788 transactions registered throughout 2025. The growth is attributed to buyers increasingly preferring more compact living spaces.
Dubai South is a planned urban and economic district spanning 145 square kilometers, located in the southernmost corridor of Dubai, UAE. Development is centered around Al Maktoum International Airport and is divided into six zones: residential, logistics, aviation, exhibition, gold, and business.
Sales Trend Analysis
Ayush Puri, Head of Residential Real Estate, Middle East, and Co-founder of Anarock Channel Partners, noted that Dubai South has already surpassed its annual housing sales volume for 2025 in just eight months. He emphasized that the key shift is in the type of property being acquired: studios and one-bedroom apartments now account for about three-quarters of all deals. Budget-friendly apartments have become the main driver of activity, expanding the area's appeal beyond larger homes that fueled its earlier growth.
In terms of value, residential transactions in the region during the first eight months of 2026 amounted to AED 15.9 billion (or INR 41,117 crore), which is equivalent to 81% of the total volume from the previous year of AED 19.6 billion (or INR 50,686 crore).
Over the past few years, the region has shown multiplefold growth: the annual value of residential sales increased from AED 0.72 billion (or INR 1,862 crore) in 2020 to AED 19.6 billion in 2025, representing a 27-fold increase. During the same period, the number of transactions grew from 672 to 9,788.
The report revealed a sharp shift towards smaller apartments: studios accounted for 45% of transactions in January-August 2026, more than double their share of 19.5% in 2025. One-bedroom apartments added another 31%, bringing the combined share to approximately 76%. Overall, apartments made up 94.5% of the residential sales volume, compared to 31% in 2020.
The average housing price in January-August 2026 was AED 1,656 (or INR 42,836) per square foot, whereas in 2020 it was AED 650 (or INR 16,809). However, the average deal size decreased to AED 1.28 million (or INR 3.31 crore) compared to the peak of AED 2.57 million (or INR 6.65 crore) in 2023.
The consulting firm explained this decrease as a change in the structure of offered products and increased demand for more affordable and smaller units, rather than a broad correction in real estate prices. Puri clarified that a lower average purchase size does not necessarily mean a lower price per square foot, as the central point is the change in product assortment. He also added that a lower average deal size should not be mistaken for a market price correction, noting that the market is in a 'launch and absorption' phase, and the ready and secondary housing segments are not yet mature.
The report showed that the share of off-plan sales in residential transactions in January-August 2026 was 94%, higher than the 73% recorded in 2020.
Infrastructure Support and Rental Market
Demand is supported by infrastructure development. The master plan for Dubai South anticipates accommodating around one million residents and 500,000 jobs upon full completion. In April 2024, an expansion of Al Maktoum International Airport was approved at AED 128 billion, with the first operational phase scheduled for 2032. The airport is expected to handle 260 million passengers and 12 million tons of cargo annually.
The rental market in the area has also expanded: the average annual rent rose from AED 34,534 (or INR 8.93 lakh) in 2020 to AED 82,063 (or INR 21.22 lakh) in January-August 2026. The volume of rental transactions increased fourfold compared to 2020 levels.
Land sale data also indicates the stability of the launch pipeline. The value of commercial deals increased from AED 0.06 billion (or INR 155 crore) in 2020 to AED 5.46 billion (or INR 14,120 crore) in 2025, with land accounting for 97% of the total volume in 2025. In the first eight months of 2026, developers acquired an additional AED 2 billion (or INR 5,172 crore) in land.
Looking ahead, the report points to 38,116 units planned for delivery between 2027 and 2029, more than 3.5 times the 10,813 units delivered from 2016 to 2026. The peak delivery is expected in 2028 with 16,094 units. Although the region remains an attractive investment destination, Puri warned that the 'concentrated delivery period will test the market's absorption capacity, requiring sustained demand to meet supply.'
At the current sales pace for January-August, the report forecasts an annual figure for 2026 of approximately AED 23.9 billion (or INR 61,805 crore).