New suburban neighborhoods are increasingly popular among Dubai tenants as rising rents force them to seek out more inexpensive communities. Because of their affordability, Lehbab, Al Aweer, and Al Marmoom are quickly emerging as new suburban rent neighborhoods.
“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 noted that affordable rents in Lehbab, Al Aweer, and Al Marmoom now range between Dh23,000 and Dh35,000 per year. Villas and townhouses in these locations cost from Dh39,000 and Dh73,000.
Over the last few years, towns like JVC, Silicon, Arjan, and Dubailand have been viewed as suburbs. However, these towns have witnessed a tremendous inflow of new tenants, driving rents much higher and making them extremely sought-after destinations.
“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 launched a scheme to build 17,000 studio to three-bedroom apartments at moderate prices for qualified workers in response to increased demand for affordable housing. The first phase will be developed across six sites: 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 steadily rising over the last four years, leading residents to hunt for new inexpensive communities. However, other places are witnessing a modest increase as new supply comes online, relieving rent pressures.
Ayman Youssef stated that the range of affordable rents vary depending on the type of flat.
“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
According to Youssef, localities with reasonable rents in Dubai include Bur Dubai, Karama, Deira to International City, Discovery Gardens, various brackets in Dubai Silicon Oasis, and apartments in Damac Hills 2.
Allsopp recommended that residents look for affordable flat rentals in suburban locations such as 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 went on to say that one of the most difficult aspects of cheap communities is the time it takes to get to and from the city center, followed by the lack of amenities in comparison to more upscale neighborhoods.
Allsopp stated that the trade-offs for affordability in Dubai’s suburbs include lengthier commute times 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, while not the cheapest option, Jumeirah Village Circle (JVC) is the top rental choice for Dubai’s skilled professionals because it was the most transacted community for rentals in January and February, with approximately 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, the most popular cheap areas for experienced workers are Old Dubai, Discovery Garden, Times Square, and Silicon Oasis.
Youseff noted that it is “very challenging” to find apartments in cheap communities because occupancy rates are quite high.
