By dubailife 
Many tenants in Dubai are increasingly relocating to Sharjah and the northern emirates due to rising rents, the emergence of high-quality developments, and the growing trend of hybrid work, which provides employees with more locational flexibility.
This trend mirrors previous rental cycles seen in 2009 and 2014, where tenants shifted to the northern emirates to avoid escalating rental prices. Industry experts highlight that by relocating, tenants can save up to Dh77,000 annually due to significant rent differences.
In the post-pandemic period, rental prices have surged across Dubai, Sharjah, and the northern emirates, driven by the UAE’s expanding population, which is drawn to job opportunities in various sectors. However, rents in Dubai remain more than double those in neighboring emirates. Renting a studio in Dubai can cost between Dh30,000 and Dh70,000 annually, while a one-bedroom apartment ranges from Dh50,000 to Dh130,000. Affordable areas in Dubai include Deira, International City, Sports City, and Jumeirah Village Circle, whereas prime locations like Palm Jumeirah, DIFC, and Downtown Dubai command the highest rents.
In Sharjah, studios range from Dh12,000 to Dh40,000 per year, and one-bedroom apartments are priced between Dh14,000 and Dh55,000. In Ajman, Umm Al Quwain, Fujairah, and Ras Al Khaimah, studio rents range from Dh12,000 to Dh34,000, while one-bedroom apartments cost between Dh15,000 and Dh50,000 annually.
James Joughin, executive director for advisory and valuation at Asteco, noted that this trend is consistent with past market cycles, where affordability drove tenants to the northern emirates. Long-term tenants in Dubai are experiencing steep rent increases, especially following the 2024 update to the Real Estate Regulatory Authority (RERA) rental calculator. While rents are rising in the northern emirates, they remain much lower than most areas in Dubai, offering larger living spaces as well.
In addition to rent pressures, factors like job growth in the northern emirates, driven by economic expansion, the availability of quality master-planned developments, and the flexibility provided by hybrid work arrangements are also contributing to the migration.
Jonathan Jackson, a property consultant at Huspy, emphasized that the overall cost of living in Dubai is higher than in Sharjah. While commuting from Ajman or Ras Al Khaimah to Dubai may increase fuel costs, residents benefit from lower rent and food prices, creating a more balanced cost of living.
For instance, the average rent for a three-bedroom apartment in Business Bay exceeds Dh200,000, while studio apartments average Dh55,000. In contrast, three-bedroom villas in Sharjah are listed at around Dh100,000, with some as low as Dh90,000. A daily 200km commute for a V8 SUV could cost Dh93 per day, totaling around Dh33,000 annually. When combined with the rent for a three-bedroom villa, total annual costs amount to Dh123,000, excluding food and utilities. In Dubai, just the cost of a three-bedroom apartment could exceed Dh200,000, making it a more expensive option.
Some Dubai tenants are also relocating to Ras Al Khaimah, more than 110km from Downtown Dubai, due to the region’s improving physical and social infrastructure and the availability of high-quality developments.
The migration primarily involves individuals and families in the lower-to-mid-income bracket seeking more affordable housing. Jackson added that while precise income data for renters in the northern emirates is not fully transparent, it is estimated that those renting three-bedroom apartments in Sharjah or Ajman typically earn between Dh7,000 and Dh15,000 per month. These emirates also attract long-term residents, including wealthy individuals who have lived there for years and choose not to relocate. South Asians, Africans, Arabs, and Emiratis represent a significant portion of the population in these areas.
James Joughin from Asteco further explained that, aside from lower housing costs, families relocating to the northern emirates benefit from more affordable school fees, which represent a considerable portion of living expenses. Additionally, the rise of remote and hybrid work has allowed some professionals to maintain employment in Dubai while enjoying the lower cost of living in the northern emirates.
The increased migration has led to heavier traffic between Dubai and the northern emirates, especially following the summer holidays, as schools reopen and families return from vacation. However, industry experts suggest that traffic congestion is not a significant deterrent for most tenants, with many prioritizing the financial savings, improved infrastructure, and lifestyle benefits offered by the northern emirates. The rise of hybrid work models has also reduced the need for daily commutes for many residents.
Jackson noted that while some tenants have moved back to Dubai due to traffic concerns, the decision ultimately comes down to whether one prioritizes financial savings or the convenience and comfort of urban living.
Source : Khaleejtimes