Why Dubai Property Buyers Are Shifting Their Hunt To Outskirt Areas?

Why Dubai Property Buyers Are Shifting Their Hunt To Outskirt Areas?

Are you trying to discover spacious homes in Dubai without spending a large amount of money? Many buyers face this problem because new houses in Dubai are smaller but more expensive compared to older ones.

In this article, we will provide you with information on why clients are shifting their interest to the residential areas of Dubai and looking for alternatives with much lower prices. This shift reflects the growing demand for affordable housing options in Dubai’s real estate market.

Why Dubai Property Buyers Are Shifting Their Hunt To Outskirt Areas?

Understanding The Disparity In Property Sizes And Prices

New apartment projects in Dubai differ significantly from older ones in terms of quality and offerings. Surprisingly, despite being smaller in size, 1-bedroom units command the highest price per square foot premiums. This trend has prompted buyers to seek alternatives outside established communities.

Factors Influencing Property Size And Pricing

Several factors contribute to the disparity in property sizes and prices, including:

  • Developer Strategies: Developers may opt to downsize apartments to accommodate more units in their projects, impacting property sizes and pricing.
  • Market Demand: High demand for properties in Dubai has led to increased competition among buyers, driving prices up despite smaller sizes.
  • Economic Factors: Economic conditions, such as fluctuations in plot prices and construction costs, influence developers’ decisions regarding property sizes and pricing.

Impact Of The Covid19 Pandemic On Property Demand

The COVID-19 pandemic has accelerated the demand for larger living spaces as people spend more time indoors. This increased demand, coupled with rising property prices, has led buyers to explore affordable options in Dubai.

Changes In Property Preferences Post-Pandemic

The pandemic has reshaped buyers’ preferences, with a greater emphasis on spacious homes and outdoor amenities. This shift has prompted buyers to reconsider their choices and explore alternatives in less densely populated areas.

Why Dubai Property Buyers Are Shifting Their Hunt To Outskirt Areas?

Exploring The Rise in Plan Price Premiums

Property Monitor analysts report that off-plan price premiums have increased, reaching up to 80% in Dubai Sports City and 70% in International City. This surge in premiums reflects the growing demand for properties in more affordable areas.

Analyzing The Factors Driving Demand For Offplan Properties

The increase in off-plan property demand can be attributed to several factors, including:

  • Rising Rental Prices: Escalating rental prices have motivated residents to consider homeownership as a more cost-effective alternative.
  • Accessible Mortgage Products: Easier access to mortgage products has made it feasible for more people to invest in off-plan properties.
  • Limited Supply in Established Communities: With prices increasing in established communities, buyers are turning to off-plan properties in the outskirts for better deals.

Impact On Developer Strategies

Developers are capitalizing on the growing demand for off-plan properties by launching projects in affordable areas. This strategic shift aims to cater to buyers’ preferences for larger, more affordable homes while maintaining profitability.

Also Read: UAE Home Sales On The Rise: When Is It A Good Time To Buy Real Estate Next?

The Role Of Developers In Addressing Market Demands

Developers have responded to the growing demand for affordable properties by adjusting their project offerings. Some developers have reduced apartment sizes to accommodate more units in their projects, aiming to meet the needs of budget-conscious buyers.

Impact Of Plot Prices On Apartment Sizes

The substantial increase in plot prices has forced developers to downsize apartments to maintain profitability. While this may disappoint some buyers looking for larger spaces, it enables developers to offer more affordable options in competitive markets.

Balancing Profitability And Affordability

Developers face the challenge of striking a balance between profitability and affordability when designing new projects. By optimizing apartment sizes and amenities, developers can attract buyers while maximizing returns on investment.

Examining Rental Trends In Dubai

The increase in property prices has not only impacted buyers but also renters in Dubai. Rental prices have witnessed a significant increase, further incentivizing residents to explore homeownership options.

Rental Price Disparities Across Dubai Neighborhoods

Rental prices vary across different neighborhoods in Dubai, with established communities commanding higher rents compared to outskirts areas. This disparity has driven renters to consider purchasing properties in more affordable areas.

Impact On Tenant Preferences

Rising rental prices have prompted tenants to reassess their housing options, with many considering homeownership as a more financially viable alternative. This shift in preferences has fueled the demand for properties in affordable areas.

Analyzing Property Price Trends In Dubai

Cavendish Maxwell’s Property Monitor report reveals a steady increase in property prices in Dubai, reaching all-time highs in April 2024. This upward trend highlights the challenges faced by buyers in securing affordable properties in the city.

Year On Year Price Increases And Market Trends

Property prices in Dubai have experienced consistent year-on-year increases, with prices soaring by 20.1% in April 2024 compared to the previous year. This sustained growth reflects the resilience of Dubai’s real estate market despite global uncertainties.

Implications For Buyers And Investors

The continuous rise in property prices presents challenges for both buyers and investors. While it signifies a thriving real estate market, it also underscores the importance of strategic decision-making and market awareness.

Why Dubai Property Buyers Are Shifting Their Hunt To Outskirt Areas?

Forecasting Future Market Trends

Looking ahead, analysts anticipate continued growth in Dubai’s real estate market, with some potential challenges. The divergence between ready and off-plan markets is expected to persist, with off-plan properties maintaining their appeal among buyers.

Strategies For Navigating Market Fluctuations

To navigate market fluctuations successfully, stakeholders must remain vigilant and adaptable. Developers, investors, and buyers alike must stay informed about market trends and adjust their strategies accordingly.

Maintaining A Balanced Approach To Investment

While optimism prevails regarding Dubai’s real estate market, stakeholders need to maintain a balanced investment approach. Understanding market dynamics and exercising caution can help remove risks and capitalize on opportunities.


The quest for affordable, spacious homes in Dubai has led buyers to explore outskirts areas where prices are more competitive. 

The rise in off-plan property demand, coupled with escalating rental prices, highlights the challenges faced by buyers in established communities.

As Dubai’s real estate market continues to evolve, stakeholders must remain proactive in adapting to changing dynamics and seizing growth opportunities.

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