Many tenants in Dubai are choosing to move to Sharjah and the northern emirates due to the increase in rental prices, improved quality developments, and hybrid work arrangements that allow for more flexibility in terms of location for employees. This trend is similar to previous cycles in 2009 and 2014, with tenants relocating to the northern emirates to escape high rental costs. Industry experts estimate that tenants can save approximately Dh77,000 by moving to the northern emirates due to the difference in rental prices.
Rental prices in Dubai, Sharjah, and the northern emirates have seen a significant increase post-pandemic as the population in the UAE continues to grow. However, rents in Dubai are more than double that of the neighboring northern emirates. In Dubai, the cost of renting a studio ranges from Dh30,000 to Dh70,000 per year, while a one-bedroom apartment can cost between Dh50,000 to Dh130,000 annually. Affordable areas in Dubai include Deira, International City, Sports City, and Jumeirah Village, while Palm Jumeirah, Dubai International Financial Centre (DIFC), and Downtown are among the most expensive areas to rent.
In Sharjah, rental prices are significantly lower compared to Dubai, with studios ranging from Dh12,000 to Dh40,000 and one-bedroom apartments from Dh14,000 to Dh55,000 per year. In the northern emirates such as Ajman, Umm Al Quwain, Fujairah, and Ras Al Khaimah, studios and one-bedroom apartments are priced between Dh12,000 to Dh34,000 annually. The affordability of housing in the northern emirates is a major factor driving tenants to relocate from Dubai.
Industry experts point out that factors such as job growth in the northern emirates, availability of quality developments, and hybrid work arrangements are contributing to the migration of tenants from Dubai. Many tenants are facing rent hikes in Dubai, especially following the update of the Real Estate Regulatory Authority (Rera) rental calculator. The northern emirates offer more affordable housing options with larger unit sizes, making them an attractive choice for tenants looking to save on expenses.
Jonathan Jackson, a property consultant at Huspy, highlighted that living costs in Dubai are higher compared to Sharjah, making the northern emirates a more cost-effective option for many individuals. While commuting between Dubai and the northern emirates may incur additional fuel costs, the overall cost of living, including rent and food, tends to be lower in Sharjah and the northern emirates. As a result, many tenants are choosing to relocate to areas with lower living expenses.
In conclusion, the migration of tenants from Dubai to the northern emirates is driven by affordability, job opportunities, and lifestyle choices. The lower housing costs, combined with reduced commuting expenses, make the northern emirates a desirable option for many individuals and families. Despite traffic congestion between Dubai and the northern emirates, the financial advantages and improved infrastructure in these areas continue to outweigh the challenges of daily commutes. Ultimately, the choice to relocate depends on individual preferences for financial savings or urban living convenience.
