The rising real estate prices in Dubai are well documented, reaching historic highs in terms of price per square foot, which now average around 1,800 USD. With ever-rising numbers of millionaires and expats relocating to the city from Russia, China, India, Europe, and beyond, what is certain is that Dubai has never been more in demand– or more expensive. According to CBRE, the average annual rental figure for a single-family villa is now 87,000 USD, and for an apartment at around 30,000 USD.
As real estate prices in Dubai prices rise in traditionally popular prime areas such as the Palm Jumeirah, Dubai Hills, and Emirates Hills, with sales prices rising as much as 89% over the past year and 2% month on month. In July 2023, average rents were found to be up 9% year on year across the Emirate as a whole, representing the largest jump on record. However, this recovery has been patchy, and concentrated in specific areas. Excess supply, especially in apartments, meant that the reality was that in some areas, marginal or no growth has been evident over the past 12 years.
Accordingly, residents are starting to look further afield, to ‘secondary’ locations East of the main beachfront drag of Dubai, that have largely remained more affordable, and where prices are only now starting to rise. Such areas include Silicon Oasis, Sports City, Jumeirah Village Circle, Dubailand and the Remraam district. For example, while a 1.7% increase in apartment values in the Remraam district took annual gains to 2.9%, that pales in comparison to the annual 17.9% increase for apartments on the Palm Jumeirah.
So what can these areas offer residents? To some extent, they represent the best of both worlds, within easy access to main roads into the city, to reach the business hubs of Dubai Media City, the DIFC and JLT, whilst also offering plenty of that rare commodity in a city – space, green areas and quiet. Additionally, these developments are located close to the UAE’s desert, making them idea for weekend escapes for biking, hiking and camping and easy roads into nearby Hatta or Ras Al Khaimah. Other outdoors-y attractions located on the fringes of Dubai include the Ras Al Khor Wildlife Park, Dubai Safari Park and the famous Al Qudra cycle track and lake.
