Rent in Dubai Tenants might save up to Dh100,000 per year by moving to suburbs.

Dubai's introduction of flexible work regulations is transforming its real estate market, causing a shift in demand from core areas to suburban and community-oriented buildings to combat high rents and traffic.

Many citizens, particularly freelancers, are shifting to Dubai's suburbs to take advantage of work-from-home rules while also avoiding exorbitant rental costs.

This remote job and work-from-home option enables some renters to save up to Dh100,000 a year on rent by shifting to the suburbs. This is in addition to saving time in traffic congestion.

As the emirate's population attained a new high in the post-pandemic era, traffic has grown substantially, with some people commuting for hours between work and home.

A recent research by the Roads and Transport Authority (RTA) found that remote work and flexible hours might lower peak morning commute time in Dubai by up to 30%, easing traffic and encouraging residents to adopt a lifestyle further from the city's heart.

Residents are increasingly lured to places outside of major corporate centres, thanks to the ability to work from home.  Suburban areas such as Dubai South and villa communities surrounding Al Qudra have grown in popularity, offering greater living spaces, affordable rates, and easy access to key facilities.  In October 2024, Dubai's real estate market had a transaction value of Dh54.6 billion over 23,791 deals, indicating ongoing robust demand.  This demand is consistent with the expanding trend of suburban interest fueled by flexible employment alternatives.

Importantly, the trend of shifting to Dubai South and villages along Sheikh Mohammed bin Zayed Road and Emirates Road is increasing as Dubai International Airport's activities shift to Al Maktoum International Airport during the coming decade.  This has prompted several developers, particularly significant local players, to establish master communities in certain locations.

 Freelance Professional  Hanae Ouakrime, who moved to Ras Al Khaimah a year ago owing to exorbitant rents in Dubai and Sharjah, now sees an extra benefit to her decision to relocate: she saves time commuting.

Save up to 50% off rentals

According to Youssef, tenants who relocate from Downtown can save up to 50% on yearly rates on identical buildings.

likewise, high rents, which have been steadily rising over the last 3 years, have become a barrier for some renters, forcing them to relocate to remote places.

 Today's homebuyers are searching for more than just a place to live; they want residences that promote a healthy work-life balance.  Home characteristics such as specialized office rooms, access to green spaces, and recreational amenities have emerged as high needs.  In regions such as Damac Hills 2, average sales prices increased by 29% year on year, indicating increased demand for an inexpensive suburban home that provides room and flexibility for remote work.

Dubai developers respond

Developers like Emaar, Damac, and Sobha will react to these needs by providing adaptive house layouts and community-centered designs, ensuring inhabitants have the functionality and convenience needed for remote work.

 Developers have added to this transition by investing in community-focused projects that include residential, retail, and recreational facilities.  This tendency is exemplified by projects such as Town Square by Nshama, Dubai Hills Estate, Arabian Ranches 3, and The Valley, which provide inhabitants with a self-sufficient environment complete with retail, eating, and recreational opportunities.

In recent years, Dubai has witnessed a considerable number of new project launches by local and foreign developers to accommodate demand from local renters transitioning to ownership and foreign investors purchasing homes at far lower prices than other global cities across the world.

New projects, such as Avena in The Valley and Emaar's Greenville in Emaar South, have been created to attract faraway professionals and families, with facilities that match Dubai residents' increasing lifestyle preferences.

As additional residents move into suburban regions, the demand for infrastructure to support this expansion grows.  According to the RTA analysis, remote work regulations have the potential to cut traffic on Sheikh Zayed Road by 9.8% and Al Khail Road by 8.4%.  To maintain the attraction of suburban neighborhoods, infrastructure investment, ranging from educational facilities and healthcare services to transportation networks, is critical.

Dubai's population is predicted to reach 7.8 million by 2040, highlighting the need for improved infrastructure to handle a growing resident base, particularly in suburban regions.

The shift towards remote employment is projected to have a long-term impact on the Dubai real estate market.

Farooq Syed went on to say that as demand for suburban living grows, Dubai's housing environment would likely become more balanced, with both suburban and urban districts changing to accommodate inhabitants' different requirements.  This progression aligns with Dubai's objective of sustainable and adaptive urban expansion that accommodates a diverse spectrum of lifestyle preferences.