In October 2024, the Dubai real estate market recorded 23,791 transactions valued at Dh54.6 billion, demonstrating continued strong demand and growing interest in the suburbs, driven by flexible work opportunities.

1. Reasons for tenant relocation

(1) Rental factors

Rents in Dubai have continued to rise over the past three years, putting enormous pressure on tenants.

There is a significant gap between rents in the city center and the suburbs. For example, the average rent for a two-bedroom apartment in the city center is Dh200,000, while that for Town Square is only Dh100,000, and tenants can save a lot of money on rent every year by relocating to the suburbs, which can be as much as 50% of the rent for a similar property.

(2) Transportation and Work Patterns

Traffic congestion makes for long commutes, with some motorists spending hours traveling between work and home. Flexible work policies, including teleworking and work-from-home options, allow tenants to avoid traffic congestion while giving them more options to attract residents to move to the suburbs.

Roads and Transportation Authority studies have shown that teleworking and flexible work hours can reduce Dubai's morning rush hour travel time by 30 percent.

2. Characteristics of affordable housing in the suburbs

(1) Rental Advantages

Affordable housing rents in the suburbs are relatively low, for example, the rent of a three-bedroom townhouse in The Valley is 120,000 dirhams lower than the same model in Maple.

By relocating from the city center to the suburbs, tenants can save a considerable amount of rent each year, thus reducing their financial burden.

(2) Living Space

Larger living space is available to meet the needs of families or provide freelancers with an independent workspace to enhance living comfort.

(3) Amenities and Supporting Facilities

Basic amenities are available, and the transportation network is being optimized with the gradual improvement of amenities in the surrounding area. Projects like Nshama's Town Square and Dubai Hills Estate integrate residential, retail and recreational spaces, providing residents with a self-sufficient environment that includes shopping, dining and entertainment options.

3. Developer Response Strategies

Developers such as Emaar, Damac and Sobha are responding to tenant demand by offering adaptable residential layouts and community-centered designs.

Investments in community-centered projects such as Nshama's Town Square, Dubai Hills Estate, Arabian Ranches 3 and The Valley integrate residential, retail and leisure spaces to create convenient living environments for residents.

Meanwhile, Emaar has launched new projects such as Greenville and Avena, focusing on amenities that meet the changing lifestyle needs of Dubai residents and cater to the needs of workers and families in remote areas.

4. Impact on Dubai's real estate market and outlook

With the influx of new residents in the suburbs, there is an urgent need for infrastructure. Dubai's population is expected to reach 7.8 million by 2040, highlighting the importance of expanding infrastructure in the suburbs.