The increase in rents in Dubai, due to a rise in demand and a shortage of supply, has generated an exodus within Dubai to more distant and less known areas. The neighborhoods of Dubai began to welcome city residents, who started looking for more affordable options with connections to the main points of the emirate.
Deira and Bur Dubai became the most affordable areas, and, according to Bayut data, rents increased by up to 48 percent, particularly for two-bedroom apartments in Deira. Damac Hills 2 and Mirdif are other districts that recorded increases in their apartment rents. In this scenario, Town Square emerges as a promising area in the city, where mid-level villas are rented and sold.
Town Square, the “new escape” for Dubai residents
Town Square Dubai is a residential area located on Al Qudra Road (D63) and has become a good alternative for those seeking townhouses at more affordable prices. The company behind this development is called Nshama Group, which chose to create a picturesque community with 16 gardens and a network of trails for cycling and sports. Over time, this district has become a residential spot that many investors have started to view favorably.
As experts confirm, in this area, values have increased by 45 percent for four-bedroom units. This space is one of the most attractive for tenants and investors due to the quality of the villa construction, sale prices, and facilities that fit the lifestyle.
Co-living, the concept introduced by Town Square that attracts young investors
One of the standout features of the Town Square area is a new concept that attracts young professionals: known as co-living or co-working. This system consists of creating ideal spaces for students or remote workers to have their own office there, turning their home into a workspace and recreation area. This was implemented at UNA in Town Square, where you can find 12 floors with fun environments catering to leisure and entertainment activities.
Beyond this innovative development, Town Square offers studio apartments and houses with up to four bedrooms, with values ranging between 42,000 and 203,000 dirhams. All these can be purchased with a flexible payment system, up to three years after the key handover.
What is the main reason behind the increase in rents in Dubai
Analysts have confirmed that the increase in rents and the sale of luxury, mid-range, and affordable properties has risen due to population growth and the arrival of foreign investors. The trend highlighted by experts is the demand surpassing the supply, leading to values increasing over the past year. In this context, it is said that equilibrium on both sides will only be reached between 2026 and 2028.
In this framework, it is important to highlight the ideal regions for investment. As reported by Bayut, areas such as Dubai Investments Park (DIP), Discovery Gardens, and Liwan offer the highest return on investment, ranging between 9 and 11 percent. Mid-range regions include Living Legends, Motor City, and Al Furjan, whose return exceeds 8.7 percent. Luxury apartments in Al Sufouh, Green Community, and Al Barari offer rental yields between 7 and 9 percent.
