Rents in Dubai: Tenants can save up to Dh100,000 a year by relocating to suburbs

Dubai’s embrace of is reshaping its real estate market, sparking a shift in demand from central districts to suburban and community-oriented developments to beat high rentals and traffic.

Many residents, including freelancers, are relocating to Dubai’s suburbs in order to take advantage of the work-from-home policies as well as to beat high rentals.

This remote work and work-from-home option allows some of the tenants to save up to Dh100,000 a year in rentals by relocating to the suburbs. This is in addition to saving hours in traffic jams.

As the population of the emirate has grown to a record high in the post-pandemic period, traffic has also immensely increased significantly with some motorists spending hours commuting between work and home.

A recent study by the Roads and Transport Authority (RTA) revealed that remote work and flexible hours could reduce peak morning travel time across Dubai by easing traffic and encouraging residents to consider a lifestyle removed from the city’s core.

With the freedom to work remotely, residents are increasingly drawn to areas outside the main business hubs. Suburban neighbourhoods like Dubai South and villa communities around Al Qudra have become attractive options, offering larger living spaces, competitive prices, and access to essential amenities. In October 2024, Dubai’s real estate market recorded a transaction value of Dh54.6 billion across 23,791 transactions, reflecting continued high demand. This demand aligns with the growing trend of suburban interest driven by flexible work opportunities.

Importantly, trend of relocating to Dubai South and communities along Sheikh Mohammed bin Zayed Road and Emirates Road is growing due to relocation of operations of Dubai International Airport to Al Maktoum International Airport over the . This has led many developers, especially large local players, to launch master communities in those areas.

“With rising rental pressures, moving to suburban areas is becoming a popular choice. Many communities outside central Dubai offer excellent value and quality living environments,” said Ayman Youssef, managing director, Coldwell Banker.

Freelance professional Hanae Ouakrime, who relocated to Ras Al Khaimah a year ago due to high rentals in Dubai and Sharjah, now sees an added advantage of her decision to relocate of not losing time while commuting.

“I mostly work from home and come from Ras Al Khaimah to Dubai once or twice a week. It takes just an hour if I leave early. By relocating to RAK, I’m getting bigger space for myself and my two pets and also not wasting time and energy in traffic jams,” said Ouakrime.

Youssef added that tenants can save up to 50 per cent in annual rentals on similar properties when relocating from Downtown.

“For example, a 3-bedroom townhouse in Maple rents for Dh260,000, while a similar property in The Valley rents for Dh140,000. Likewise, a 2-bedroom apartment averages Dh200,000 in Downtown compared to Dh100,000 in Town Square,” said the managing director of Coldwell Banker.

In addition, high rentals – which have been consistently on the rise over the past three years – have also become a challenge for some tenants, prompting them to remote areas.

“Rising rents are challenging for many tenants, but some are finding value in communities outside central Dubai. These areas offer good amenities and quality lifestyles, making them attractive alternatives,” he added.

Farooq Syed, CEO of Springfield Properties, said the data from the RTA highlighted a pivotal shift in how Dubai residents are choosing to live.

“With a push from the government to allow for remote working, there will be less need to commute, and people will prioritise spacious homes in communities that support their work-from-home lifestyle. This trend will reshape Dubai’s property market and set new priorities for buyers,” he said.

Today’s homebuyers seek more than just a place to live; they’re looking for properties that support a balanced work-life dynamic. Home features such as dedicated office spaces, access to green areas and recreational facilities have become top priorities. In areas like Damac Hills 2, average sales prices rose by 29 per cent year-on-year, demonstrating heightened demand for affordable suburban housing that offers space and flexibility for remote work.

Developers like Emaar, Damac, and Sobha are responding to these demands by offering adaptable home layouts and community-centred designs, ensuring residents have the functionality and convenience required for remote work.

Developers are further supporting this shift by investing in community-centric projects that integrate residential, retail, and leisure spaces. Projects such as Town Square by Nshama, Dubai Hills Estate, Arabian Ranches 3, and The Valley exemplify this trend, providing residents with a self-sufficient environment that includes shopping, dining, and recreational options.

“Developers are building communities that provide everything residents need within reach. This reflects a broader shift in Dubai’s real estate market toward convenience and high-quality living,” said Farooq Syed.

In the past few years, Dubai has seen a large number of new project launches by local and foreign developers to meet the demand from local tenants turning to ownership and foreign investors buying properties at a much cheaper rate than other global cities around the world.

New projects like Emaar’s Greenville in Emaar South and Avena in The Valley have been launched to cater to remote workers and families, focusing on amenities that align with the evolving lifestyle demands of Dubai residents.

As suburban areas see an influx of new residents, the need for infrastructure to support this growth becomes more pressing. The RTA study indicates that remote work policies could reduce traffic on Sheikh Zayed Road by 9.8 per cent and on Al Khail Road by 8.4 per cent. To sustain the appeal of suburban neighbourhoods, investment in infrastructure; from educational facilities and healthcare services to transportation networks, is essential.

Dubai’s population is expected to reach 7.8 million by 2040, underscoring the importance of expanded infrastructure to accommodate a larger resident base, particularly in suburban areas.

The trend toward remote work is expected to have lasting effects on Dubai’s real estate market.

Farooq Syed added that as demand for suburban living continues to rise, Dubai is likely to develop a more balanced housing landscape, with both suburban and urban areas evolving to meet residents' diverse needs. This evolution supports Dubai’s vision of sustainable and adaptable urban growth, accommodating a wide range of lifestyle preferences.