Dubai real estate: Growth and the second city
Source: REIDIN , Author: Posted by BI-ME staff
Posted: Mon August 8, 2016 11:21 am

UAE. The limited stock of affordable options in Dubai has caused for the neighboring emirates to act like satellite cities. Around 1.1 million people who work in Dubai are residents of another emirate (30% of the active population), as they try to take advantage of the cheaper rates.

Rates in other emirates such as Sharjah, Ras Al Khaimah, and Ajman are 30-40% cheaper than the affordable options of Dubai, with accessibility to larger size units.

A time series analysis of workers of Dubai who reside outside increased by 185% (13% to 37%) from 2005 to 2009, coinciding with the tripling of rental rates alongside the limited affordable housing options in the freehold space.

However, after the World Financial Crisis, rental rates plunged causing the transient population to move back to Dubai. Since 2009 to 2015, the percentage of workers living outside Dubai decreased by 16% (37% to 31%) despite the increase in rental rates in 2012.

During this period more affordable options in the freehold space became available in the form of DSO, Sports City, and Discovery Gardens, offsetting the hike of city-wide rents.

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About Unitas
Unitas believes in in-depth planning and discipline as a mechanism to identify and exploit market discrepancy and capitalize on diversified revenue streams. The purpose of Unitas is to manage, direct, and create wealth for our clients.

 

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