These Dubai suburbs are becoming increasingly popular with tenants
Dubai Marina, JLT, The Palm, JBR, Downtown… a few years ago, if you asked people where they lived, these neighbourhoods would come up in conversation often. But now things are changing.
According to a recent report by GCP-Reidin, competitive rental deals and new units are pulling tenants towards suburban areas. Apparently Jumeirah Village Circle (JVC) and Dubailand are increasingly popular with mid-income tenants, becoming almost as popular as the likes of JLT and Dubai Marina.
As well as JVC and Dubailand, upcoming areas include Jumeirah Village Triangle (JVT), Dubai Investments Park, Dubai Silicon Oasis, Sports City and Remraam.
The trend is also apparent with the number of new units handed over – Silicon Oasis has the highest delivery of new units so far in 2017, with 2,763 new homes, followed by Dubailand with 2,520. Meanwhile, International city continues to grow with 1,543 units.
Downtown has had 1,411 new homes handed over and Business Bay, which Lonely Planet recently named one of the world’s coolest neighbourhoods, has had 869 new units in the first six months of the year.
“A look into different community occupancy rates reveals the “suburban” effect underway,” the report from GCP-Reidin reads. “The popularity of mid-income areas such as JVC and DRC have surged in recent years, having similar occupancy rates of more established areas such as JLT and Marina. The rapid rate of change in the suburban areas is testament to the population’s need for a more balanced housing market that is more affordable.”
According to the report, the supply of new housing forecast for 2018 looks roughly in line with demand, if the population continues to increase at a rate of five percent per year. However, if the city’s population grows much higher that 5 percent per year, there could be a slight undersupply in the market, pushing rental prices upwards.