Are you feeling the problem of property charges increasing in Dubai? In this scenario, you are not alone. Many people are considering looking for much cheaper alternatives to real estate in the Emirates because they are facing increased property prices in Dubai.

Many investors and buyers are also considering unique alternatives in locations like Abu Dhabi, Ras Al Khaimah, and Sharjah due to increased property prices.

As Dubai Property Prices Peak, Demand For Affordable Real Estate Rises In Other Emirates

In the modern years, the Dubai property market has greatly increased. Official records indicate that home income transactions in Dubai advanced with utilization of 38% from 2022 to 2023. This has made an already expensive market even more expensive for a lot of potential buyers.

Other emirates are now attracting more attention. Abu Dhabi, for example, has kept its property prices relatively stable over the past four years. This stability, along with prices being about one-third cheaper than in Dubai, has led to a significant increase in property transactions in the capital city.

Total transactions in Abu Dhabi rose by 75% in 2023 compared to the previous year.

In Sharjah, property prices are generally lower than in Dubai. This makes it an attractive option for budget-conscious buyers. The introduction of freehold property options in Sharjah has further boosted its appeal, especially among people who wish to live there.

Similarly, Ras Al Khaimah is becoming increasingly popular due to its natural beauty and growing tourism sector, which has led to a rise in real estate demand.

From Renting To Owning In Abu Dhabi

Many residents in Abu Dhabi have used stable property prices to transition from renting to owning homes. This trend is driven by affordability and the potential for property value appreciation.

Over the past 12 months, residential values in Abu Dhabi have increased by 2.6%. Villa prices, in particular, have seen a 10% rise, although they still trail the 2014 peak by 9.8%. Apartment prices are also below their peak from 10 years ago by 25.6%.

International interest in Abu Dhabi’s property market is also growing. The proportion of international buyers for new homes in Abu Dhabi has risen significantly, indicating the emirate’s emerging status as a destination for international property investors.

Also Read: UAE’s Housing Market Growth Accelerating

The Impact Of Ras Al Khaimah’s Wynn Resort

Ras Al Khaimah’s real estate market has been boosted by the development of the multi-billion-dollar Wynn Resort and gaming venue, set to open in 2027. This project has caught the attention of wealthy international investors, making the emirate a more attractive investment destination.

About 64% of high-net-worth individuals now view Ras Al Khaimah more favorably for property investments, largely due to the Wynn Resort.

Several major developers from Dubai have launched flagship projects in Ras Al Khaimah, further boosting its real estate market. The emirate’s natural attractions, such as mountains and beaches, add to its appeal as both a residential and investment destination.

Popular Areas In Other Emirates

Abu Dhabi is seeing a steady rise in demand for community living, with about 70% of buyers expressing interest in such environments. Areas like Al Raha Gardens and Al Reef Villas are particularly popular.

Since the first quarter of 2020, property prices in these neighborhoods have seen significant increases. Al Raha Gardens has seen a 12.1% rise in prices, while villa prices in Al Reef Villas have gone up by 18.5%.

In Ras Al Khaimah, Marjan Island is in high demand due to the upcoming Wynn Resort. Other popular areas include Al Hamra Village, known for its resort-style living and beachfront properties, and Mina Al Arab, which offers luxurious villas and apartments with scenic views.

In Sharjah, developments are attracting a lot of interest. These communities offer amenities comparable to those in some of Dubai’s more prestigious neighborhoods but at a lower price per square foot 

Growth In The Rental Market

Not only is there a surge in home buying, but the rental markets in these emirates are also growing. Many residents who find Dubai’s rental prices too steep are now considering renting in Abu Dhabi, Sharjah, and Ras Al Khaimah. These emirates offer more affordable rents along with a high quality of life, making them attractive alternatives.

In Abu Dhabi, the rental market has remained stable with slight increases in some areas. Al Raha Gardens and Al Reef Villas are popular not only for buyers but also for renters. These communities offer spacious homes with access to good amenities, making them desirable for families and professionals alike.

Sharjah’s rental market has also seen an uptick. The lower rental prices compared to Dubai attract many who work in Dubai but prefer the more affordable and quieter lifestyle Sharjah offers. The new freehold properties in Sharjah are particularly appealing, providing modern living spaces at competitive rates.

Infrastructure And Economic Growth

The infrastructure development in these emirates also plays a significant role in their growing appeal. Abu Dhabi has made substantial investments in infrastructure, culture, and tourism. This has not only boosted its economy but also enhanced its living standards, making it an attractive place for residents and investors alike.

Sharjah is known for its cultural heritage and educational institutions. The emirate has also invested in improving its infrastructure, making it more accessible and livable. New residential and commercial developments are equipped with modern amenities, which add to Sharjah’s appeal.

Ras Al Khaimah’s growth is fueled by its focus on tourism and industrial development. The establishment of free economic zones and new projects like the Wynn Resort have attracted foreign investments. 

The emirate’s natural beauty, combined with these developments, makes it a compelling choice for real estate investment. 

Arshad Darbar’s Thoughts 

Arshad Darbar, a seasoned real estate expert, sees the shift in demand towards Abu Dhabi, Sharjah, and Ras Al Khaimah as a natural response to Dubai’s soaring property prices.

He believes that the affordability and stability in these emirates offer great opportunities for both investors and homebuyers. Darbar highlights that Abu Dhabi’s stable prices and significant infrastructure investments make it an attractive alternative. 

Sharjah’s lower property prices and the introduction of freehold properties are drawing budget-conscious buyers, while Ras Al Khaimah’s natural beauty and upcoming projects like the Wynn Resort are transforming it into a sought-after destination.

According to Darbar, these trends indicate a balanced growth in the UAE’s real estate market, providing a range of options for different buyer profiles. He suggests that potential investors should consider these emerging markets for their next property purchase.

Conclusion

As Dubai’s property prices continue to peak, the demand for affordable real estate in Abu Dhabi, Sharjah, and Ras Al Khaimah is on the rise. These emirates offer stable prices, promising growth prospects, and a high quality of life. 

For those feeling the pressure of Dubai’s high costs, these neighboring regions present viable and attractive alternatives. Whether you’re looking to buy a home, invest in property, or find a more affordable rental, Abu Dhabi, Sharjah, and Ras Al Khaimah have much to offer.