Dubai, Abu Dhabi Residents Choosing Location Over Cost

More People Moving Closer to Workplaces in the UAE

As traffic in the cities of the United Arab Emirates, especially in Dubai and Abu Dhabi, rapidly increases, more and more residents are deciding to pay higher rents just to live closer to their workplace. The time spent commuting and traffic jams not only cause inconvenience, but they also severely affect people's productivity, mental state, health, and the time they spend with their families.

The Cost of Daily Commuting

After the summer break and before the start of the school year, road traffic in the UAE increased significantly. According to the latest Salik data, by the second quarter of 2025, there were 4.56 million active registered vehicles on the roads – almost 400,000 more than in the same period a year earlier. This increase reflects the extent of traffic congestion, leading many employees to reconsider the location of their residence.

Commuting for even 2-3 hours a day previously causes such a level of stress that it can lead to health and family problems in the long run. Therefore, it is not surprising that many are willing to pay higher rents to improve their quality of life.

Change in Workers' Perspectives

Employers and recruitment specialists increasingly report that employees are setting new priorities. In addition to productivity, mental well-being, leisure time, and time spent with family have become equally important. This change in perspective is particularly true for those working in urban environments, such as Downtown Dubai or the business districts of Abu Dhabi.

The head of a major international recruitment firm notes that employees are becoming more conscious of the time spent on travel. Many are no longer willing to spend long hours in traffic jams and prefer to move closer to their office, saving not just time, but also nerves. Some try to make better use of travel time, such as listening to audiobooks, learning languages, or following professional podcasts, but a shorter, stress-free route is still a more attractive option.

Real Estate Market Reorientation

The increasing population density of Dubai and Abu Dhabi, along with the associated traffic pressure, has also changed the demand for real estate. Real estate agencies report that more and more people are looking for apartments and villas directly near their workplaces, or in areas with good access to their office and children's school.

For instance, many working near the Dubai International Financial Centre (DIFC) prefer the nearby Downtown or Business Bay areas, even if the rents are higher, as they gain precious time and peace. Such decisions can already be measured in the real estate market: there is increased demand for premium-located apartments, especially around urban transport hubs.

Abu Dhabi: Not Just Closer, But Better

While Dubai's traffic has become proverbial, Abu Dhabi has taken a different approach to urbanization. The city's infrastructural developments have been foresighted, with roads, bridges, and public transport networks designed to exceed current demands. This enables commuting in Abu Dhabi to be less problematic, and in many cases, commuting is not a necessity, but a conscious lifestyle choice.

In Abu Dhabi, areas like Al Reem Island, Maryah Island, Saadiyat Island, or Yas Island offer modern living environments with waterfront views, schools, shops, and recreational opportunities. These neighborhoods are popular not only for proximity to workplaces but also because they offer excellent quality of life. Moreover, many new projects are pedestrian-friendly, further reducing the need for daily commutes.

Long-term Effects

Current trends suggest that the traffic situation will have a lasting impact on the UAE's housing market, urban planning, and workforce mobility. Companies providing housing opportunities around their offices or supporting employees' relocation may gain a competitive advantage in retaining workforce.

Furthermore, interest in hybrid working is likely to increase, as remote work options can further reduce the need for daily commuting and the pressure on employees.

Summary

The rising traffic in Dubai and Abu Dhabi has led many residents to reassess the significance of distance between work and home. Long commutes are mentally and physically taxing, reducing quality of life. UAE cities are increasingly adapting to changing needs: premium residential areas are being built near workplaces, transportation infrastructure is improving, and maintaining work-life balance has also become a priority. While all this may come with a financial cost, for many, the time and peace saved is worth more than anything.

(The article is based on interviews with recruitment and real estate market leaders in the United Arab Emirates.)