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Dubai South, the master-planned city and free zone centered around Al Maktoum International Airport, is proceeding with its 2026 real estate plans with delivery commitments not contingent on short-term uncertainties, Group CEO Nabil Al Kindi told Zawya Projects.
“The contractor appointment for Hayat confirms that our construction and delivery programmes are advancing as committed,” he stated.
In March, Dubai South Properties, the real estate subsidiary of Dubai South, awarded a 2 billion UAE dirhams ($545 million) main construction contract for Hayat to Mohammed Abdulmohsin Al Kharafi & Sons.
Al Kindi said that the real estate sector in Dubai is supported by strong fundamentals, a clear government vision, and an investment proposition that has proven its resilience and appeal.
“Those foundations do not change with the current circumstances,” he stated.
Interview excerpts
Has there been any change in Dubai South's real estate development plans due to the current regional situation?
Our plans remain fully on track. Earlier this month, we awarded an AED 2 billion construction contract to deliver several phases of Hayat by Dubai South, one of our flagship master-planned communities.
Construction is set to commence in the second quarter of 2026, with the initial phases targeted for completion in 2028. This announcement reinforces our commitment to investors and the market. Dubai South is a planned city designed for the future, anchored by what will become the world's largest airport, and our delivery commitments are not contingent on short-term uncertainties.
Do you see any effect on demand for commercial, residential and logistics real estate in the UAE?
Despite the ongoing situation, demand across real estate has remained strong. This is reflected in the latest figures from the Dubai Land Department, which show the emirate’s real estate sector delivering a strong performance in the first quarter of 2026, with overall transaction activity reaching AED 252 billion, a 31 percent year-on-year increase in value.
We expect this momentum to be sustained. The sector is supported by strong fundamentals, a clear government vision for the emirate, and an investment proposition that has proven its resilience and appeal. Those foundations do not change with the current circumstances.
Do you expect off-plan sales to be impacted in the short term for projects in Dubai South?
The numbers speak for themselves. In the first quarter, overall residential transaction activity at Dubai South reached approximately AED 5.2 billion, with around 86 percent of sales coming from off-plan transactions. This is not a market showing signs of hesitation.
Our current flagship project, Hayat, witnessed strong demand at launch last year. New phases are in the pipeline and will be launched in direct response to this exceptional demand. We remain confident in the medium- to long-term demand trajectory for Dubai South’s residential portfolio.
Have you delayed new project launches planned for 2026?
We are proceeding with new phase launches and have an additional project in the pipeline before the end of the year, which are all fully in line with our initial plans for 2026. The recent contractor appointment for Hayat further confirms that our construction and delivery programmes are advancing as committed.
What is your outlook for the real estate market in 2026?
We entered 2026 from a position of demonstrable strength, with Dubai South continuing to attract significant interest from investors and end users.
Dubai South is designed to ultimately accommodate one million residents once Al Maktoum International Airport reaches full capacity. Our plans are aligned with our leadership's long-term vision for the economy, and that vision remains unchanged.
Can you share construction updates on some of your projects?
We are moving forward as planned across our portfolio. South Bay, one of our flagship master communities, and South Living are both progressing well, with over 1,000 units on track for handover before the end of 2026. Our delivery schedules remain unchanged, and our commitments to investors and end users continue without disruption.
(Reporting by P Deol; Editing by Anoop Menon)
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