Dubai South recorded 12,428 residential property transactions between January and August 2026, surpassing the 9,788 transactions registered during the whole of 2025 by 27 per cent, according to Anarock Research's Dubai South Residential Micro-Market Report. Residential sales value reached AED 15.9 billion during the eight-month period, representing 81 per cent of the AED 19.6 billion recorded in 2025.The report highlights significant growth in Dubai South's residential market, with annual sales value increasing from AED 720 million in 2020 to AED 19.6 billion in 2025. Transaction volumes also rose from 672 homes to 9,788 during the same period.Demand has increasingly shifted towards smaller residential units. Studio apartments accounted for 45 per cent of transactions during January–August 2026, compared with 19.5 per cent in 2025. One-bedroom apartments contributed another 31 per cent, taking their combined share to approximately 76 per cent. Apartments represented 94.5 per cent of total residential sales volume, compared with 31 per cent in 2020.Aayush Puri, CEO – Residential, Middle East and CEO – Anarock Channel Partners, said, 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.Average residential property prices increased from AED 650 per sq ft in 2020 to AED 1,656 per sq ft during January–August 2026. However, the average transaction value declined to AED 1.28 million from its peak of AED 2.57 million in 2023, primarily reflecting increased demand for smaller homes rather than an overall correction in property prices.Off-plan properties continued to dominate the market, accounting for 94 per cent of residential transactions during the first eight months of 2026, compared with 73 per cent in 2020.Dubai South's growth is supported by major infrastructure developments, particularly the AED 128 billion expansion of Al Maktoum International Airport, approved in April 2024. The airport is planned to eventually accommodate 260 million passengers and 12 million tonnes of cargo annually, with its first operational phase targeted for 2032. The 145 sq km Dubai South development is designed to accommodate approximately one million residents and generate 500,000 jobs at full development.The rental market has also expanded, with average annual rents increasing from AED 34,534 in 2020 to AED 82,063 during January–August 2026. Rental transaction volumes have quadrupled since 2020. Apartments recorded an indicative gross rental yield of 4.3 per cent in 2025, compared with 3.4 per cent for townhouses and 3 per cent for villas.Commercial land transactions have also increased, with transaction value rising from AED 60 million in 2020 to AED 5.46 billion in 2025. Developers acquired an additional AED 2 billion worth of land during the first eight months of 2026, indicating continued development activity.Looking ahead, the report identifies 38,116 residential units scheduled for delivery between 2027 and 2029, more than 3.5 times the 10,813 units delivered between 2016 and August 2026. Scheduled handovers are expected to peak at 16,094 units in 2028, with apartments accounting for 85 per cent of the under-construction inventory.Puri cautioned, This concentrated delivery period will test absorption, with sustained demand needed to keep pace with supply. 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 pace, residential transaction value could reach approximately AED 23.9 billion in 2026, subject to market conditions. However, the report notes that this estimate is a directional projection rather than a formal forecast.The findings indicate sustained residential development momentum in Dubai South, driven by demand for smaller apartments, continued off-plan launches and major infrastructure investments. However, the substantial supply pipeline expected between 2027 and 2029 will be a key test of the market's ability to absorb new housing inventory.