REG News
Dubai: Dubai South’s residential property market is on track to record its highest annual sales value in 2026 if the current pace continues through December. Based on the AED 15.9 billion recorded during January–August, the market could reach approximately AED 23.9 billion for the full year, according to ANAROCK’s Dubai South Residential Micro-Market Report.
The estimate is a directional projection, not a formal forecast. However, the market’s next challenge will be absorbing a substantial pipeline of new homes. The report identifies 38,116 residential units scheduled for handover between 2027 and 2029, more than 3.5 times the 10,813 units delivered between 2016 and 2026 to date. Annual handovers are expected to peak at 16,094 units in 2028.
Apartments account for 85% of under-construction residential stock, compared with 59% of ready homes, indicating that apartment supply will continue to shape the market. Aayush Puri, CEO – Residential, Middle East and CEO – ANAROCK Channel Partners, cautioned that sustained buyer demand would be necessary to absorb the concentrated supply. The scale of deliveries between 2027 and 2029 will test the market’s ability to maintain its current sales momentum.
Studios and apartments are expected to remain important drivers as developers continue to introduce smaller homes. Meanwhile, the secondary market could gradually deepen as off-plan properties are handed over.
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Changes Likely in Infrastructure
Ready and secondary transactions accounted for less than 6% of residential sales volume during January–August 2026, according to the report. Rental yields may also face pressure in 2026 and 2027 if capital values increase faster than rents. This could affect returns for investors, even as the market continues to expand. Infrastructure development remains another important factor.
Dubai South is centred around Al Maktoum International Airport, but the report cautions that major infrastructure programmes may face changes in phasing and timelines. The airport’s stated ultimate capacity should not be confused with its current operating capacity.
The report describes its outlook as a directional assessment based on recorded transactions and publicly available infrastructure disclosures, rather than a forecast. The pace of future handovers, continued housing demand and infrastructure delivery will be key factors shaping Dubai South’s residential market over the next three years.
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