Dubai South sees surge in demand for smaller homes

Dubai South recorded 12,428 residential transactions between January and August 2026, exceeding its full-year 2025 total by 27%. Studios accounted for 45% of transactions, while one-bedroom homes contributed 31%, highlighting growing demand for smaller, relatively affordable properties.

Dubai South sees surge in demand for smaller homes in 2026. (Image for representational purpose only)

PROPERTY PULSE

Dubai South, the master-planned urban development in the UAE, recorded 12,428 residential transactions between January and August 2026, exceeding the 9,788 transactions recorded during the whole of 2025.

The eight-month total was 27 per cent higher than the previous year’s full-year figure, reflecting growing demand for smaller homes, according to a report by real estate consultancy Anarock.

Studio apartments accounted for 45 per cent of transactions during the first eight months of 2026, compared with 19.5 per cent in 2025. One-bedroom units contributed another 31 per cent, taking the combined share of these smaller homes to 76 per cent.

The trend points to buyer preference for properties with relatively lower entry costs.

Prices Rise, Average Ticket Size Falls

Residential sales in Dubai South totalled AED 15.9 billion during January–August 2026, equivalent to 81 per cent of the AED 19.6 billion recorded in 2025. The average price per sq. ft. rose from AED 650 in 2020 to AED 1,656 in the first eight months of 2026.

In contrast, the average transaction value declined from its 2023 peak of AED 2.57 million to AED 1.28 million in 2026, equivalent to approximately ₹3.3 crore. ANAROCK attributed the decline primarily to the growing proportion of transactions involving smaller homes, cautioning against interpreting the lower average ticket size as a broad-based fall in property prices.

Also Read: HMDA Sets ₹120-Cr Floor Price for Kokapet Land

Infrastructure & Future Supply

Dubai South spans 145 sq. km around Al Maktoum International Airport. The planned development aims to accommodate one million residents and support 500,000 jobs, positioning it as a major residential and employment hub.

Around 38,116 homes are scheduled for delivery between 2027 and 2029, including 16,094 units in 2028. The scale of planned supply will make sustained buyer demand important for the market. Infrastructure development, employment generation, affordability and the pace at which new homes are absorbed will influence the development’s next phase of growth.