In the realm of ambitious infrastructure projects, Dubai has consistently stood out, showcasing a remarkable ability to envision and execute ground-breaking developments. One such project that has garnered significant attention is the expansion of Al Maktoum Airport, (DWC), 45 kms south of Dubai Creek, poised to become the world's largest airport upon completion. Plans worth $35bn (£28bn) have been announced for the expansion of Dubai’s second largest airfield into the city’s main international airport, which will make it the largest in the world. This ambitious endeavour not only promises to revolutionise air travel but also holds profound implications for the region's real estate sector.
Real estate brokers in Dubai are already anticipating a surge in demand, particularly in the vicinity of Dubai South, which will be home to this mega-development. With increased connectivity and a thriving aviation industry, the area is expected to attract residents, businesses, and investors, creating a wealth of opportunities in the real estate market.
Unprecedented Expansion
With the ongoing expansion, Al Maktoum Airport is set to become the crown jewel of Dubai's aviation infrastructure. The project, known as Dubai World Central (DWC), aims to transform the airport into the primary aviation hub in the region, capable of handling over 200 million passengers annually. This expansion is part of Dubai's broader vision to position itself as a global aviation and logistics hub, bolstering its status as a key player on the world stage.
The Airport Expansion Project
The plans for upgrading and expanding Al Maktoum International Airport (DWC) emerged following analysis that demonstrated Dubai’s current principal airport Dubai International Airport (DXB) cannot expand to meet future demand.
According to an announcement on 28 April 2024, from Emirate of Dubai ruler Sheikh Mohammed bin Rashid Al Maktoum, DWC will be the “world’s largest airport”, replacing DXB as Dubai’s primary air passenger hub.
Located in the desert 45 km from DXB, the upgraded DWC will expand from two to five runways and will have the capacity to process up to 260M passengers a year through new terminal facilities designed to recall the traditional Bedouin tents of the Arabian Peninsula.
DXB is currently the world’s busiest airport for international travel, with a record 89M passengers passing through it in 2018. Numbers dropped during the pandemic to 66M passengers in 2022, but according to figures released in February by operator Dubai Airports, DXB registered a 31.7% increase in passenger traffic last year to 86.9M, surpassing pre-pandemic levels. Dubai Airports said it forecast DXB would receive 88.8M passengers in 2024 with further growth predicted.
DXB is connected to 262 destinations across 104 countries through 102 international carriers, the operator said. India was DXB’s top destination country in terms of traffic with 11.9M passengers last year, followed by Saudi Arabia with 6.7M, Britain with 5.9M and Pakistan with 4.2M. However, expansion of DXB is restricted by the presence of flanking residential neighbourhoods and two major highways.
Information published by Dubai Aviation Engineering Projects (DAEP), the infrastructure developer for Dubai’s aviation sector, confirms DWC’s new runways will be arranged in a parallel configuration and will feature 400 aircraft gates equally divided to service four concourses. The 100 boarding gates of each concourse will be lined along the airport’s piers, with a spine linking the airport’s nodes, enabling smooth access to the aircraft through multiple boarding bridges. Each of the concourses is described in the plans as “a megastructure”, with a built-up area of 2.3M.m2. Stretched across 2.7km, each concourse will equal the length of the three concourses at DXB. The West Terminal building at DWC will host origin and destination passengers, with dedicated halls for first and business, as well as economy class.
A 14-station Automated People Mover (APM) will carry travellers from terminals to concourses as well as between concourses, “allowing transferring passengers to reach connecting flights through the shortest and smoothest path.” The central piazza of the concourse, where the APM drops off passengers, will feature expansive retail, dining and entertainment spaces.
Plans for DWC also include its repositioning as a base for global aviation innovation, featuring “a new era of smart airport systems and passenger-centric facilities, taking travellers to worldwide destinations in the most awe-inspiring and comfortable way possible”.
DWC will also be able to process 15Mt of cargo annually via a multi-modal cargo hub enabling air, land, and sea connection with dedicated freight storage space on the airside, landside and by the seaport. These facilities will support the growth of the nearby Logistics District, planned as an international base for global cargo and shipping companies.
Sheikh Mohammed bin Rashid Al Maktoum said in an online statement:
“We are building a new project for future generations, ensuring continuous and stable development for our children and their children in turn.
“Dubai will be the world’s airport, its port, its urban hub and its new global centre.”
He confirmed in a separate announcement that the expansion of Al Maktoum International Airport will be complete within the decade.
DAEP will deliver the airport in a phased plan. Phase 1 will see the airport open to new airlines, supported by an annual capacity of 130M passengers. To achieve this capacity, two more runways, Concourse 1 and the West Terminal building will be completed.
Air Transport Developments
For many years Dubai has developed its “Open Skies” policy where any airline is welcome to operate. Although some countries, like India, are still operating a restrictive capacity policy, its population has demanded increased access to Dubai and the regions have become economically interdependent. In the last 27 years the exports of the United Arab Emirates to India have increased at an annualised rate of 14.8%, from $1.23B in 1995 to $51B in 2022.
The expansion of DWC will occur alongside the expansion of both Emirates Airlines and FlyDubai. Emirates are refurbishing their fleet of A380 and B777 and introducing a new Premium Economy class in response to demand. In addition, it will in 2024/25 start taking more efficient A350 and B787 aircraft that will allow it to expand its network and global coverage offering premium quality travel to a growing number of passengers. In 2026 it will also start taking delivery of over 200 B777X aircraft that will become the core of its fleet. Later in this decade Emirates will transfer its operations to DWC offering its guests a whole new experience. At the same time FlyDubai that operates 80 737s with 136 more on order will also introduce the B787 aircraft that will transform its network coverage from its dominant position at DXB, that will also accommodate an increasing number of airline services from all corners of the globe.
From 2025 onwards the world’s airlines will start taking delivery of some 550 Airbus A321XLR that offer 200 seats over ranges up to 4,700 nautical miles or 11 hours of flying time. The A321XLR, a network extender, sits side by side with widebodies in an airline’s fleet. It introduces the flexibility to add capacity, to open new routes, or even to continue operating existing ones when demand is variable. All while burning 30% less fuel per seat than previous generation competitor aircraft, at roughly half the trip cost of modern widebodies. With over 5,000 of the Airbus A320 family still on order it is expected this will dramatically expand operations at both DXB and DWC.
Between now and 2035 we can expect to see a significant expansion of services from the two most populous countries in the world, China, and India.
The Impact on Real Estate
It is estimated that the overall economic impact of both aviation and tourism related activities in Dubai rose to $53.1 billion in 2020. This is equivalent to 37.5 percent of Dubai's GDP, supporting over 754,500 Dubai-based jobs. The expansion of Al Maktoum Airport is not only reshaping Dubai's aviation landscape but also exerting a profound influence on the region's real estate sector. Airports are significant ‘economic enablers’ acting as vital support for hospitality, tourism, and all forms of commerce. As the airport continues to grow, it is driving demand for residential, commercial, and hospitality properties in the surrounding areas.
One of the most significant outcomes will be the establishment of new commercial districts adjacent to the major seaport, airport and global logistics hub. This creates a prime location for businesses seeking to establish a presence in Dubai. Additionally, for those seeking a hassle-free property ownership experience, property management services in Dubai can ensure their investment is well-maintained and delivers strong rental yields.
Opportunities Abound
The expansion of Al Maktoum Airport presents a myriad of opportunities for real estate developers and investors. The overall DWC development includes Dubai South which has residential projects for up to 1 million people creating a dynamic work hub with 500,000 job opportunities. With the increasing demand for housing, commercial space, and hospitality services, there is a growing need for innovative and sustainable development projects in the area. Developers are capitalising on this demand by creating master-planned communities with luxury properties in Dubai that offer a mix of residential, commercial, and leisure amenities, catering to the diverse needs of the growing population.
The development of DWC has spurred the construction of new residential communities, commercial centres, and hospitality facilities, catering to the needs of airport staff, travellers, and businesses operating within the airport's vicinity. This presents exciting opportunities for those considering buying property in Dubai. Investors can explore a variety of options, from off-plan projects in Dubai South offering the potential for high returns, to established communities ideal for families. With a thriving aviation industry on its doorstep, the area is poised for significant growth.
Infrastructure Development
In addition to driving real estate development, the expansion of Al Maktoum Airport is spurring infrastructure development in the surrounding areas. The Dubai government has invested heavily in improving transportation links, including road networks, public transportation, and connectivity to the airport. The RTA will be providing the Metro Route 2020 service to DWC, and it will have Etihad Rail stations at Dubai South, DWC Airport, and Dubai Industrial City. These infrastructure upgrades are not only essential for supporting the airport's growth but also enhancing the overall accessibility and connectivity of the region.
Dubai's ambitious plan to expand Al Maktoum Airport is set to redefine the region's aviation landscape and transform its real estate sector. As the airport continues to grow, it will drive demand for residential, commercial, and hospitality properties in the surrounding areas, presenting lucrative opportunities for developers and investors alike.
With its strategic location, state-of-the-art facilities, and forward-thinking vision, Al Maktoum Airport is poised to solidify Dubai's position as a global aviation and logistics hub for years to come.
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