Dubai South has recorded a record number of residential property transactions during the first eight months of 2026, with buyers increasingly opting for studios and one-bedroom apartments. According to property consultancy Anarock, the area registered 12,428 residential transactions between January and August, surpassing the 9,788 transactions recorded during the whole of 2025. The total value of residential sales reached AED 15.9 billion, equivalent to approximately ₹41,117 crore.
The latest figures reveal a changing pattern in Dubai’s property market. Smaller homes accounted for about 76% of transactions in Dubai South during the period, while the average purchase value per home declined from its 2023 peak. At the same time, average prices per square foot continued to rise. The market’s next major challenge will be absorbing a substantial pipeline of new homes scheduled for completion between 2027 and 2029.
Key Takeaways
- Record transactions: Dubai South recorded 12,428 residential transactions in January–August 2026, 27% above the full-year 2025 total.
- Smaller homes dominate: Studios accounted for 45% of transactions, while one-bedroom homes contributed another 31%.
- Sales value grows: Residential transactions reached AED 15.9 billion in the first eight months of 2026.
- Price distinction: Average prices reached AED 1,656 per square foot, even as the average transaction value per home fell to AED 1.28 million.
- Off-plan dominance: Off-plan properties represented 94% of residential transaction volume.
- Supply challenge ahead: A reported 38,116 homes are scheduled for delivery between 2027 and 2029, with handovers expected to peak in 2028.
Dubai South Residential Sales Reach a New High
Dubai South is a master-planned development and economic zone covering approximately 145 square kilometres in the southern part of Dubai, United Arab Emirates. The development is organized around residential communities, logistics, aviation, exhibitions, business and other commercial activities.
Its location near Al Maktoum International Airport has made the area a focus for residential and commercial development. The latest transaction figures suggest that the market has continued expanding even as geopolitical uncertainty affects the wider region.
According to Anarock’s data reported by Business Standard, the number of residential transactions rose from 672 in 2020 to 9,788 in 2025. The 12,428 transactions recorded in just the first eight months of 2026 exceeded every full-year total in the consultancy’s historical series.
Residential sales value reached AED 15.9 billion during January–August 2026, equal to 81% of the AED 19.6 billion recorded during the whole of 2025. If the pace of sales value continues through December, the report estimates that full-year 2026 residential sales could reach approximately AED 23.9 billion.
That projection is an estimate based on the existing run rate, not a confirmed full-year result.
Studios and One-Bedroom Apartments Lead Demand
The most significant change in Dubai South is the growing preference for smaller residential units.
Anarock’s figures show that studios accounted for 45% of residential transactions during the first eight months of 2026, up from 19.5% in 2025. One-bedroom properties represented another 31%, bringing their combined share to approximately 76%.
| Property metric | Reported figure |
|---|---|
| Residential transactions, Jan–Aug 2026 | 12,428 |
| Transactions during full-year 2025 | 9,788 |
| Comparison with full-year 2025 (unlike periods) | 27% above 2025 full-year volume |
| Studio share of transactions | 45% |
| One-bedroom share of transactions | 31% |
| Combined studio and one-bedroom share | Approximately 76% |
| Apartment share of residential sales volume | 94.5% |
Period clarification — October 26, 2026: The Anarock figures reported by Business Standard compare January–August 2026 with all of 2025. The 27% transaction-count difference is not a like-period year-on-year growth rate.
The trend suggests that a larger share of buyers is choosing properties with lower total purchase prices. Smaller apartments may appeal to investors seeking rental income, individual buyers and households looking for more affordable entry points into the Dubai property market.
However, transaction data alone does not establish the motivation of every buyer. The shift in property mix is clear, but individual purchasing decisions can reflect different financial circumstances and investment strategies.
Property Prices Rise While Average Purchase Values Fall
At first glance, rising prices per square foot alongside a lower average property transaction value may seem contradictory. The difference becomes clearer when the size of the properties sold is considered.
Anarock reported that the average residential price in Dubai South reached AED 1,656 per square foot during January–August 2026, compared with AED 650 in 2020. Meanwhile, the average transaction value per home declined to AED 1.28 million from its peak of AED 2.57 million in 2023.
| Metric | Reported figure |
|---|---|
| Average price per square foot in 2020 | AED 650 |
| Average price per square foot, Jan–Aug 2026 | AED 1,656 |
| Average transaction value per home in 2023 | AED 2.57 million |
| Average transaction value per home, Jan–Aug 2026 | AED 1.28 million |
The distinction is between the price of a unit of floor space and the total cost of a property. A smaller apartment can have a higher price per square foot while still costing less overall than a larger home.
Anarock attributed the decline in average transaction value largely to the growing share of smaller properties rather than a broad-based correction in property prices. Buyers and investors should therefore avoid treating the lower average purchase value as proof that homes across Dubai South have become cheaper.
Off-Plan Properties Account for Most Transactions
Dubai South’s residential market remains heavily dependent on off-plan sales, which involve purchasing properties before construction is completed.
According to Anarock, off-plan transactions represented 94% of residential transaction volume during January–August 2026, compared with 73% in 2020.
This indicates that new launches and developer-led sales continue to play a central role in the area’s growth. Off-plan properties can offer buyers staged payment plans and access to developments before completion, although they also carry risks related to construction schedules, handover dates and the future availability of comparable properties.
The consultancy described Dubai South as still being in its launch-and-absorption phase, with the ready-property and secondary markets yet to mature fully.
For the market to remain balanced, demand will need to keep pace with the delivery of newly constructed homes. High transaction volumes during a period dominated by off-plan purchases do not, by themselves, establish how easily every development will be resold or rented after completion.
Al Maktoum International Airport Supports the Development Outlook
Infrastructure expansion is a central part of Dubai South’s long-term development strategy.
The area is planned around Al Maktoum International Airport, whose AED 128 billion expansion was approved in April 2024. The airport’s ultimate design capacity is 260 million passengers and 12 million tonnes of cargo annually, with the first operational phase targeted for 2032.
Dubai South’s master plan is designed to accommodate approximately one million residents and 500,000 jobs at full build-out.
Airport-related activity, logistics operations and commercial development could support future demand for housing. However, these are long-term development objectives rather than guarantees of property-price appreciation. The pace of residential demand will depend on factors including employment growth, infrastructure delivery, affordability and the timing of new supply.
Rental Market and Future Housing Supply
The rental market has also expanded alongside residential sales. Anarock reported that average annual rent increased from AED 34,534 in 2020 to AED 82,063 during January–August 2026. Rental transaction volume grew to approximately four times its 2020 level.
For investors, higher rents can support the case for residential property ownership, but gross rental income is not the same as net returns. Service charges, vacancy periods, maintenance, financing expenses and transaction costs can all affect the actual yield.
Supply is another important consideration. The report identified 38,116 residential units scheduled for delivery between 2027 and 2029, more than 3.5 times the 10,813 units delivered between 2016 and 2026 to date. Handovers are expected to peak at 16,094 units in 2028.
This concentration of new supply could test the market’s ability to absorb additional housing. If demand grows sufficiently, the new homes could support a larger residential population. If deliveries outpace demand, some developments could face greater competition for buyers and tenants.
The Bigger Picture
Dubai South’s record transaction volume reflects a property market that has expanded rapidly while shifting towards smaller homes. Studios and one-bedroom apartments now account for most residential transactions, and off-plan purchases dominate activity. At the same time, rising average prices per square foot show why transaction values must be interpreted alongside changes in the size and type of properties being sold.
The market’s long-term performance will depend on more than the number of homes sold today. Infrastructure development, employment opportunities, rental demand and the delivery of new housing will influence whether current activity can be sustained. The scheduled handovers between 2027 and 2029 will be an important test of that balance.
FAQs
1. How many residential properties were sold in Dubai South in 2026?
Dubai South recorded 12,428 residential transactions between January and August 2026, according to Anarock data reported by Business Standard. That exceeded the 9,788 transactions recorded during the whole of 2025.
2. Why are smaller apartments gaining popularity in Dubai South?
Studios and one-bedroom apartments accounted for approximately 76% of transactions in the first eight months of 2026. Their lower total purchase prices may broaden access for buyers and investors, although the data does not identify the motivation behind every purchase.
3. Are property prices falling in Dubai South?
The reported figures do not establish a broad-based price decline. Average transaction value per home fell to AED 1.28 million, but average prices per square foot rose to AED 1,656. The growing share of smaller homes helps explain the difference.
4. What role does Al Maktoum International Airport play in Dubai South’s growth?
The airport expansion forms part of the area’s long-term infrastructure and economic development plans. It could support employment, logistics and residential demand, but the impact will depend on project timelines and the development of surrounding economic activity.
5. What is the biggest risk for Dubai South’s property market?
A substantial pipeline of new housing is scheduled for delivery between 2027 and 2029. If demand and rental absorption do not keep pace, developers and property owners could face increased competition. The scale of the impact will depend on actual delivery schedules and market conditions.
Looking Ahead
Dubai South’s residential market is entering a period in which the relationship between demand and new supply will become increasingly important. Transaction volumes and rental activity provide evidence of an expanding market, but the scheduled delivery of 38,116 units over 2027–2029 will test whether buyers and tenants can absorb the additional housing.
Investors and developers will be watching property prices, rental performance, handover schedules and the development of Al Maktoum International Airport. Those indicators will help determine whether the area’s strong transaction activity translates into sustainable long-term growth or whether increased supply puts pressure on individual developments.
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