Apartments in Dubai's older suburbs are experiencing a decline in popularity while those in new areas of the city are becoming more popular because they are now more affordable.
Manager of Dubai based Geometrics Real Estate, Musham Khan, said that a number of people who had been living in cramped accommodation in older areas of Dubai could now afford to live in newer areas of the city.
In some areas rent prices have fallen up to 35% and some people are even prepared to put up with an hour's commute if it means better property at a lower price. Villas are also experiencing an upsurge in interest in some areas as they too become more affordable.
'We have seen a significant decline in the rent in Discovery Gardens. As it becomes affordable more people are going to move there. I had two customers who were living in old buildings in Bur Dubai who moved to Discovery Gardens after their previous landlords raised their rents. They were paying the same as they were in their old accommodation,' he said.
In February, a fifth of all page views on UAE real estate web site, Propertyfinder.ae, came from people looking into renting in Discovery Gardens.
Data from the third quarter of 2008 listed on the Real Estate Regulatory Agency rent index shows the location, close to the Jebel Ali Free Zone and popular with white collar workers, has seen a price drop of 35%.
Vincent Easton, sales manager at Sherwoods said that he has also seen a migration from older areas to the newer areas of Dubai. He said that developments closer to Jebel Ali were also popular for Abu Dhabi workers looking for cheaper deals than those found in the capital.
'We are seeing more people in Abu Dhabi who are fed up with the exorbitant rents who are moving to these areas. Even though they face commutes of up to an hour that's what most people are used to in places such as the UK,' he added.
Areas showing increased interest include Dubai Marina, the Springs, the Lakes and Arabian Ranches. 'Most people with families are finding that villas are suddenly within their price range,' said Easton.
