A city on the move: Demographic trends

Dubai: Cheaper rents, larger living spaces, newer buildings and better facilities are forcing a major population shift in Dubai.

While Dubai continues to witness an influx of people from Abu Dhabi and Sharjah, the emirate is also recording a number of residents upgrading to better locales within the city itself.

Speaking to XPRESS, Craig Plumb, Director-Head of Research, Jones Lang LaSalle, Mena, said: "Dubai is recording a high number of people moving from low-cost areas to those that were previously more expensive."

Plumb said his company has noted popular trends in population shifts from Al Quoz area to Mirdif. "Similarly, Mirdif residents are finding better residential opportunities in Al Barsha area, Dubai Silicon Oasis (DSO) and even Arabian Ranches. Jumeirah Lake Towers (JLT) is recording an influx of residents from Discovery Gardens. Downtown Dubai too is seeing some key shifts with the more up-market Burj Khalifa Downtown area receiving residents moving out of Dubai Marina."

Mohanad Al Wadiya, Managing Director, Harbor Real Estate, said: "People in Dubai are moving around for better prices, flexible payment plans, better facilities and amenities."

He added that people are constantly shopping for newer buildings with good facilities and management services. "The trend has been for people seeking 24-hour security within a building or a community, better property management services, ample parking spaces and access to main attractions," said Al Wadiya.

Dubai resident Wail Chrifi, a relationship manager at a utilities management firm, said he has managed to get a good deal for his new apartment in Dubai.

He was previously working in Abu Dhabi and living in a studio space in a villa and was paying a rent of Dh40,000 per annum. However, he has now moved to a studio apartment in Skycourts Tower in Dubailand Residence Complex, paying a rent of Dh17,000 per annum.

Apart from saving on rent, Chrifi doesn't just have his own studio apartment to live in, but also has several facilities like a gym, 24-hour building security, swimming pool, etc. "This is a much better rental deal. Moreover, I am now getting several facilities in Skycourts which I never had when I was staying in Abu Dhabi," he said.

Sanjay Bhatia, another resident who works in Abu Dhabi, said he has opted to live in JLT's Tamweel Tower in Dubai because of cheaper rents and proximity to his child's school. "I currently live in a three-bedroom apartment and pay an annual rent of Dh145,000. This rent might be hard to find in Abu Dhabi," he said.

Chrifi and Bhatia are just some of the many residents taking advantage of Dubai's rental drop and fresh delivery of newer buildings offering better residential options.

Vineet Kumar, Asteco's Business Development Head, said another interesting trend in Dubai's population shift has been the migration of tenants from two- and three-bedroom apartments to town houses and smaller sized villas.

"Location, proximity to a Dubai Metro station, etc, are now becoming key priorities for many tenants who are prepared to pay up to 20 per cent extra for the privileges. Dubai Metro has added a whole new market dynamics and, as the network rolls out across the emirate, the rental disparity might become even more pronounced than it has ever been before," said Kumar.

He added that tenants these days do not necessarily have to save up for shifting to a new apartment. "For the same value, they are able to move to a bigger living space," he said.

Influx into Dubai

Meanwhile, Dubai continues to witness an influx of residents from Sharjah.

Al Wadiya said: "People from Sharjah are taking up places in the northern parts of Dubai. Projects like Shorooq and Ghoroob in Mirdif and, more recently, Skycourts at Dubailand Residence Complex have contributed to this major shift."

According to Harbor Real Estate, over 650 apartments have been rented out in the last four months alone at Skycourts with most of the tenants coming from Sharjah, Ajman and other old and poorly maintained projects in Dubai.

"Since the beginning of the property downturn in Dubai, the influx of tenants from other emirates such as Ajman, Sharjah and Abu Dhabi to Dubai has been steady. This internal migration has been fuelled by a sharp reduction in rental prices in Dubai and the excellent lifestyle that it offers. The once out-of-reach emirate has further introduced quality residential units across different popular districts that serve as an attraction to tenants looking for better value for money," Al Wadiya said.

Take the instance of Zenil Rizvi, a 32-year-old property management and leasing executive in a real estate company.

Rizi has recently upgraded from a one-bedroom house on Sharjah's King Faisal Street to a two-bedroom flat in Skycourts Tower in Dubailand.

"It's difficult to find a better deal than this in Dubai. I am paying a rent of Dh47,000 per annum for my two-bedroom flat. Is there a better offer that I can find?"

Rizvi admitted that he might find a two-bedroom apartment for less in Sharjah, but may have to compromise on quality. "I do believe that the apartments are evenly priced in Skycourts and what's more it has great ambience too."

Asteco's Kumar added that there has been a trend of a continuing shift of tenants from Sharjah to Dubai.

"This has been happening lately, but it does depend on the location and type of property. We have seen a record number of new residential leases being entered into over the past year. This has something to do with the increase in population and drop in rent, which enables people to move to a property that suits them better. On other occasions, tenants are prepared to pay an extra premium to upgrade and move to properties closer to their work and their child's school."

Contrary to belief that ‘single' men and women tend to move homes often, experts told XPRESS that families with children are also taking advantage of the available residential options.

Further, a cross-section of nationalities are moving from other emirates for larger living spaces. "We have definitely noticed that singles, as well as families, are taking advantage of the rent reduction within Dubai and even making the move from other emirates," said Al Wadiya.

He added that people moving house tend to come from different ethnic and age backgrounds. "The common variable they share is their search for a better ‘value for money' property."

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SOURCE: Asteco