Dubai, 26 October 2026: Dubai South recorded more residential transactions in the first eight months of 2026 than in any full year covered by Anarock Research’s latest micro-market report, with 12,428 transactions already 27% above the 9,788 recorded in all of 2025. According to the Anarock Dubai South Residential Micro-Market Report (September 2026), residential sales value reached AED 15.9 billion between January and August, equivalent to 81% of the previous full-year total of AED 19.6 billion. The report tracks transactions from 2020 to August 2026.
The longer-term change is equally striking: annual residential sales value grew from AED 0.72 billion in 2020 to AED 19.6 billion in 2025, approximately 27 times its starting level. Over the same period, the number of homes transacted rose from 672 to 9,788, with both sales value and volume increasing every full year in the series.
Source: Anarock Research & Advisory
Aayush Puri, CEO - Residential, Middle East & CEO - Anarock Channel Partners, says, “Dubai South has already surpassed its full-year 2025 residential sales volume in just eight months. The important change is what buyers are purchasing: studios and one-bedroom homes now account for around three-quarters of transactions. Smaller-ticket apartments are becoming the main driver of activity, broadening the corridor’s residential appeal beyond the larger homes that led its earlier growth.”
Source: Anarock Research & Advisory
Studios accounted for 45% of transactions in January–August 2026, more than double their 19.5% share in 2025. One-bedroom homes contributed another 31%, taking the combined share to approximately 76%. Apartments overall represented 94.5% of residential sales volume, compared with 31% in 2020.
Source: Anarock Research & Advisory
That shift towards smaller homes has changed the relationship between prices and purchase budgets. The average residential price stood at AED 1,656 per sq ft in January–August 2026, compared with AED 650 in 2020. Yet the average ticket size eased to AED 1.28 million from its AED 2.57 million peak in 2023. Anarock attributes this divergence to the changing product mix and greater traction for smaller, more affordable units, rather than a broad-based price correction.
“A lower average ticket size should not be mistaken for a market-wide price correction,” adds Puri. “The report shows a greater share of smaller homes being sold even as average prices per square foot have risen. A lower total purchase price does not necessarily mean a lower price per square foot. The changing product mix is central to understanding those two trends.”
Source: Anarock Research & Advisory
“Off-plan sales continue to dominate, accounting for 94% of residential transaction volume in January–August 2026, up from 73% in 2020,” says Puri. “This is a market still in its launch-and-absorb phase, with the ready and secondary segment yet to mature.”
The infrastructure backdrop is substantial. The report places the 145 sq km master-planned city 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 its 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.
The rental market has also expanded. Average annual rent rose from AED 34,534 in 2020 to AED 82,063 in January–August 2026, while rental transaction volume grew to four times its 2020 level. Apartments recorded an indicative gross rental yield of 4.3% in 2025, before service charges, vacancy and transaction costs.
Rents, land, and the road ahead
A rental market is forming around the same product. Average annual rent rose 2.4x, from AED 34,534 in 2020 to AED 82,063 in 8M2026, and rental transaction volume has grown 4x since 2020. Gross yields (2025, before costs) stand at 3.9% overall, led by apartments at 4.3%, then townhouses at 3.4% and villas at 3.0%.
Land sales point to more launches ahead. Commercial transaction value rose from AED 0.06 Bn in 2020 to AED 5.46 Bn in 2025, with land making up 97% of the 2025 total. Developers bought a further AED 2.0 Bn of land in 8M2026, a sign that the launch pipeline is not slowing.
Outlook for Dubai South:
- 2026 is on track for a record full year, provided the current pace holds through December.
- The apartment and studio led mix is likely to continue as affordable launches dominate new supply.
- As off plan stock is handed over, the secondary market, under 6% of 8M2026 volume, should gradually deepen.
- Gross yields may compress in 2026 and 2027 if capital values rise faster than rents.
- The large 2027 to 2029 handover wave will test absorption; demand needs to hold at current levels to keep pace with delivery.
The report notes that its outlook is a directional reading of recorded transactions and public infrastructure disclosures, not a forecast. Large infrastructure programmes can face phasing changes, and the airport expansion has already been rescheduled once. The next major milestone is the handover pipeline.
The report identifies 38,116 units scheduled for delivery in 2027–2029, more than 3.5 times the 10,813 units delivered between 2016 and 2026 to date. Scheduled handovers peak at 16,094 units in 2028, while apartments account for 85% of under-construction stock against 59% of ready stock.
“This concentrated delivery period will test absorption, with sustained demand needed to keep pace with supply,” cautions Puri. “The airport expansion is also subject to phasing and timeline revisions; its stated capacity should not be read as current operating capacity.”
At the January–August sales-value run-rate, the report indicates approximately AED 23.9 billion for full-year 2026 if that pace holds through December. While that would exceed the annual totals in its 2020–2025 series, this calculation is a directional projection, not a forecast.
Download Anarock Dubai South Residential Micro-Market Report (September 2026)