Dubai: Demand For Budget-Friendly Housing Grows In Suburbs, With Rents Starting From Dh23,000 Yearly

(MENAFN- Khaleej Times)

New suburban areas are becoming popular among Dubai tenants as rising rents push residents to look for more affordable communities. Due to the affordability factor, Lehbab, Al Aweer, and Al Marmoom are fast-emerging new suburban rent areas.

“Dubai's rental affordability is being redefined , and new data shows that 'affordable' apartments are available, specifically in suburban areas away from the city centre,” said Lewis Allsopp, Chairman at Allsopp & Allsopp.

He added that affordable rents in Lehbab, Al Aweer, and Al Marmoom now average between Dh23,000 to Dh35,000 annually. Villas and townhouses in these areas range from Dh39,000 to Dh73,000.

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Over the past few years, communities such as JVC, Silicon, Arjan, and Dubailand have been perceived as suburban areas. But these communities have seen a massive influx of new tenants, pushing rents substantially higher and making them highly sought-after areas.

“A significant 13 per cent year-on-year jump in rental prices across Dubai is encouraging residents to look beyond the city core, leading to increased demand in these communities and a notable shift in Dubai's residential landscape,” said Allsopp.

Affordable communities for skilled workers

Earlier this month, Dubai announced a project to deliver 17,000 studio to three-bedroom apartments with affordable rents for skilled professionals to meet the rising demand for affordable housing. The first phase will be developed across six sites in Al Mueisim 1, Al Twar 1, Al Qusais Industrial 5 and Al Leyan 1.

Ayman Youssef, managing director of Coldwell Banker, UAE, said that once these affordable properties enter the market, a“more substantial cooling of rental prices” will be expected.

“At the moment, I don't anticipate a significant drop in rents solely due to this new project, as the current demand far exceeds the 17,000 units being introduced. For a noticeable softening in rental prices, 300,000 units currently under construction will be a more decisive factor,” he said.

Rents in Dubai have been constantly on the rise over the past four years, prompting tenants to look for new affordable communities. However, some areas are seeing a slow increase as new supply is coming online, easing pressure on the rents.

Ayman Youssef said the range for affordable rents varies based on the type of apartment.

“For a studio, it is usually up to Dh30,000, up to Dh50,000 for 1-bedroom units and up to Dh65,000 for 2-bed apartment per annum.”

Top affordable communities

Youssef said communities that offer affordable rents include Dubai such as Bur Dubai, Karama, Deira to International City, Discovery Gardens and some brackets in Dubai Silicon Oasis and apartments in Damac Hills 2.

For affordable apartment rentals, Allsopp suggested that tenants should look to suburban areas like Lehbab, Al Aweer and Al Marmoom.

“These communities, roughly 25-30 minutes from hubs like Jumeirah Village Circle and Town Square, offer more budget-friendly options. If you're seeking villas or townhouses in the Dh40,000 to Dh55,000 range, consider Dubai Industrial, Ras Al Khor, or Nahda. Essentially, affordability means looking beyond the city centre. So, these areas are further out from established villa communities like Jumeirah Golf Estates and Arabian Ranches,” he added.

Commuting is a challenge

Youssef added that travel time to and from the heart of the city is one of the biggest challenges of the affordable communities, followed by the availability of amenities compared to some of the more upscale areas.

Allsopp added that the trade-offs for affordability in Dubai's suburban areas are things such as longer commutes and less developed amenities.

“However, Dubai's rapid growth means these communities are poised for significant development within the next decade. Expect infrastructure improvements and increased connectivity, similar to what we've seen with Al Khail Road and Hessa Street, making these areas predicted future hotspots,” he said.

Popular affordable communities

Allsopp said that despite not being the absolute cheapest, Jumeirah Village Circle (JVC) is the top rental choice for Dubai's skilled professionals as it was the most transacted community for rentals in January and February, with around 1,300 contracts signed each month, and an average rental price of Dh70,000.“It's a testament to how quickly Dubai develops, as JVC was once considered a far-out location.”

According to Coldwell Banker, Old Dubai, Discovery Garden, Times Square area and Silicon Oasis are the most popular affordable communities among skilled professionals.

Youseff revealed that it is“rather difficult” to get apartments in affordable communities as the occupancy levels in these areas are quite high.

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