The ongoing coronavirus pandemic has accelerated plans by residents in Dubai to move out to the suburbs of the city where rental rates are generally lower.

According to a new survey of thousands of tenants in Dubai who made moving requests to ServiceMarket during the third quarter of 2020, living centrally in the city is no longer a top priority and more people are looking to move to the outskirts.

With many people still working from home because of the Covid-19 situation, the commute factor is proving less of an issue as people don’t have to travel to work or school on a daily basis.

"Earlier on, when moving to a new place, the proximity to the place of work or school was an important element in determining the move. However, during the pandemic, remote working has allowed residents to move to the outskirts where they can get spacious villas/ townhouses at reasonable rates without having to worry about the daily travel to and from home."

Its report also showed that since 2019, rental rates in Dubai have been on a downward trend due to the disparity between supply and demand as more and more projects were developed and handed over.

The arrival of the Covid-19 pandemic in 2020 exacerbated the situation and further drove down the rental rates as demand for new homes dropped.

Rental rates per square foot in the suburban areas are lower compared to other areas within the city. Rental rates of three-bedroom villas in Akoya Oxygen are around AED66,000 while similar-sized units in areas closer to the city’s centre, like Jumeirah, are around AED157,000, the report noted.

It added that rental costs in the suburbs are not only lower but also offer more space. Many of the suburbs offer townhouses and villas with spacious gardens and more rooms.

"These extra rooms have proved to be quite useful during the pandemic when most of the people are either working from home or opting for distance learning in which case they require a home office or a separate room for studying," ServiceMarket said.

ServiceMarket added that according to requests to its platform, the most popular residential areas to move to during Q3 were Dubailand and suburbs; Downtown Dubai, Business Bay, DIFC; Dubai Marina, JBR, Bluewaters; Academic City, Silicon Oasis, International City; Jumeirah Village Circle and Triangle; Jebel Ali, Discovery Gardens, The Gardens, Al Furjan; Jumeirah Lake Towers, Jumeirah Heights, Jumeirah Islands, Jumeirah Park; Mirdif; Motor City, Sports City, Studio City; Bur Dubai.

The top 10 areas in Dubai where residents moved to in Q3 2020 comprise more than half of the total move-in requests. A closer look at the top areas showed that the vast majority are in, what is known as, New Dubai.

Dubailand and its suburbs, comprising multiple projects such as Town Square, Mira Community, Akoya Damac, Remraam, and Arjan, came top of the list with approximately 12 percent of all moves.

Not surprisingly, highly dense urban centres like Dubai Marina and Downtown Dubai continue to be popular.

Dubailand and its suburbs is not only the most popular residential areas to move to among Dubai residents but is also the fastest-growing area in Dubai. In comparison to last year, the number of move-in requests received for Dubailand has increased by 30 percent.

One of the driving forces behind this trend is the rising popularity of Town Square, which has seen thousands of residential units being handed over in late 2019.

Akoya Oxygen by Damac also appears to be popular as ServiceMarket said it has seen a significant increase in the move-in requests in one quarter alone as opposed to the whole of 2019.

Academic City, Silicon Oasis and International City have also seen an increase, reinforcing the premise that people are moving towards the suburbs at the outskirts of the city.

These communities on the outskirts of Dubai mainly target the ex-pat community, especially families with kids, promoting an improved standard of living with enough space for the kids to play and enjoy the outdoors.

Founded in 2013, ServiceMarket has since grown to four cities in the Middle East, with plans to expand in the MENA region and beyond.

The most popular places to move to in Dubai in Q3:

• Dubailand and suburbs

• Downtown Dubai, Business Bay, DIFC

• Dubai Marina, JBR, Bluewaters

• Academic City, Silicon Oasis, International City

• Jumeirah Village Circle and Triangle

• Jebel Ali, Discovery Gardens, The Gardens, Al Furjan

• Jumeirah Lake Towers, Jumeirah Heights, Jumeirah Islands, Jumeirah Park

• Mirdif; Motor City, Sports City, Studio City; Bur Dubai

https://www.arabianbusiness.com/property/454635-why-more-dubai-residents-are-moving-to-the-suburbs-amid-coronavirus-crisis