Dubai South recorded 12,428 residential transactions in the first eight months of 2026, surpassing its full-year 2025 total by 27%, according to Anarock Research. Studios and one-bedroom apartments accounted for more than three-quarters of sales.
October 29, 2026 | Palak Kataria | UAE | Real Estate | 3 Min Read
Image Courtesy: Anarock
Dubai South recorded 12,428 residential property transactions between January and August 2026, exceeding the 9,788 transactions registered throughout 2025 by 27%, according to a new report by Anarock Research.
The Dubai South Residential Micro-Market Report has found that residential sales reached AED15.9 billion during the eight-month period, equivalent to 81% of the AED19.6 billion recorded in the whole of 2025.
The findings indicate a substantial increase in transaction activity across the district, alongside a shift in demand towards smaller residential units.
Dubai South's residential market has expanded significantly since 2020.
According to Anarock, annual residential sales value increased from AED720 million in 2020 to AED19.6 billion in 2025, representing approximately 27 times the earlier figure.
Transaction volumes also rose from 672 properties in 2020 to 9,788 in 2025, with both sales volume and value increasing each year during the period.
The first eight months of 2026 have already surpassed the previous year's total transaction volume.
At the current sales-value run rate, the report indicates that Dubai South could record approximately AED23.9 billion in residential sales for the full year, provided the pace continues through December.
However, Anarock describes this calculation as a directional projection rather than a formal forecast.
A major change in Dubai South's residential market has been the growing demand for smaller apartments.
Studios represented 45% of residential transactions between January and August 2026, compared with 19.5% in 2025.
One-bedroom apartments accounted for a further 31%, bringing the combined share of studios and one-bedroom homes to approximately 76%.
Apartments overall represented 94.5% of residential transaction volume, up from 31% in 2020.
Aayush Puri, CEO - Residential, Middle East and CEO - Anarock Channel Partners, said the shift towards smaller properties is broadening the area's appeal to buyers.
"The important change is what buyers are purchasing: studios and one-bedroom homes now account for around three-quarters of transactions," Puri said.
The average residential price in Dubai South reached AED1,656 per square foot during January–August 2026, compared with AED650 per square foot in 2020.
Despite the increase in price per square foot, the average transaction ticket size declined to AED1.28 million from a peak of AED2.57 million in 2023.
Anarock attributed the difference to the growing proportion of smaller apartments being sold, rather than a general decline in property prices.
Off-plan transactions continued to dominate the market, accounting for 94% of residential sales volume during the first eight months of 2026, compared with 73% in 2020.
The figures suggest that new project launches remain the primary source of transaction activity, while the ready and secondary markets are still developing.
Dubai South's rental market has also expanded.
Average annual rent increased from AED34,534 in 2020 to AED82,063 during the first eight months of 2026, while rental transaction volume grew fourfold over the same period.
The report placed the area's overall indicative gross rental yield at 3.9% in 2025.
Apartments recorded the highest gross yield at 4.3%, followed by townhouses at 3.4% and villas at 3%.
These yields are calculated before service charges, vacancy periods and transaction costs.
Commercial property activity has also increased, with transaction value rising from AED60 million in 2020 to AED5.46 billion in 2025.
Land accounted for 97% of commercial transaction value in 2025, while a further AED2 billion in land transactions was recorded during January-August 2026.
Dubai South faces a substantial residential delivery pipeline over the next three years.
Anarock identified 38,116 residential units scheduled for completion between 2027 and 2029, compared with 10,813 units delivered between 2016 and the first eight months of 2026.
Scheduled handovers are expected to peak in 2028, with 16,094 units.
Apartments account for 85% of the under-construction residential stock, compared with 59% of the existing ready inventory.
The area's long-term development is also linked to the expansion of Al Maktoum International Airport, with an AED128 billion expansion approved in 2024.
The airport's ultimate planned capacity is 260 million passengers annually, although this represents a future design target rather than current operating capacity.
Anarock cautioned that the concentrated handover pipeline will require sustained demand to absorb incoming supply.
The report also noted that infrastructure delivery timelines may change and that rental yields could come under pressure if property values increase faster than rents.
Source: Anarock Research & Advisory
