In 2025, Dubai’s tier-2 neighborhoods, such as Jumeirah Village Circle (JVC), Arjan, Jumeirah Village Triangle (JVT), Sports City, and Motor City, are poised to attract residents from neighboring emirates like Sharjah, Ajman, and Abu Dhabi. The influx is driven by multiple factors, including improved property availability, easing rental rates, and time-saving benefits for commuters.
With over 40,700 new units delivered in 2024 and an additional 120,000 under construction, Dubai is preparing for a significant increase in residential property supply. Fawaz Sous, CEO of Octa Properties, predicts that this growth will make Dubai rentals more competitive. "The cost of renting in Dubai’s second-tier areas will become comparable to those in neighboring emirates, providing an incentive for residents to return to Dubai," he explained.
A key factor influencing this shift is traffic congestion. Many residents spend three to four hours daily commuting between Dubai and other emirates. Rising rentals in areas like Sharjah and Ajman, combined with high commuting costs, have prompted many to reconsider their decision to live outside Dubai. For example, a studio in Dubai’s International City costs approximately Dh20,000 annually, only slightly higher than Dh18,000 in Sharjah or Dh17,000 in Ajman. Factoring in fuel costs and time savings, Dubai becomes a more attractive option.
Dubai’s infrastructure development continues to be a major draw for residents. The emirate’s consistent investment in physical and legal infrastructure ensures a high standard of living and transparency in property transactions. Safety, security, capital appreciation, and rental returns remain traditional drivers of the real estate market.
Industry experts expect the trend of migration from older communities to newer developments to persist. These shifts are supported by Dubai’s stable real estate market, which has quadrupled its transaction volume compared to its 2014 peak while maintaining a controlled price increase of 15-20%. This stability ensures Dubai’s appeal to returning tenants and new residents alike.
