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Affordable housing for expats in Dubai is at an all-time low
| Published: | 21 Apr at 6 PM |
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Tagged: Property Abroad, Dubai
Expatriate professionals working in Dubai are famous for being amongst the top earners in the expat world, but do they earn enough to support their preferred lifestyles in luxury apartments?
It’s true that expats in Dubai earn considerably more than they would in their home countries, but the emirate has been reported as one of the planet’s most expensive rental destinations by a plethora of surveys. In the real world, although Dubai salaries are tax free, the shocking cost of accommodation limits the options of all but a few.
Recent studies have revealed the annual salary necessary for a single tenant to afford to rent a 420-square foot room now stands at around £50,000, with a family of four needing a hefty £93,000 to be able to afford the rental on a suitable property. Rental charges in Dubai aren’t the highest in the world, but are more expensive than in the majority of similar locations. For example, it’s cheaper to rent quality accommodation in London, Tokyo, Amsterdam, Paris, Melbourne or Miami than it is in Dubai.
Even average lease rates in EU headquartered Brussels as well as Barcelona, Madrid, Vienna and Frankfurt are less than half as pricey as their Dubai equivalents. Last year’s Mercer’s cost of living survey placed Dubai's cost of living as the 21st most expensive of 209 world cities, and a Savills survey confirmed the need for a generous expat salary. Analysts agree the high cost of accommodation is pricing expat residents out, with many turning to flat-shares to decrease the financial burden.
According to local real estate firms, the supposedly ongoing attempts to increase the supply of affordable housing units seem to have stalled, even although demand is rising and developers could be sure of strong interest. Only 18 per cent of new developments in 2015 came into the ‘affordable’ category, a fall from the previous year’s 22 per cent.
Source: Gulf News
It’s true that expats in Dubai earn considerably more than they would in their home countries, but the emirate has been reported as one of the planet’s most expensive rental destinations by a plethora of surveys. In the real world, although Dubai salaries are tax free, the shocking cost of accommodation limits the options of all but a few.
Recent studies have revealed the annual salary necessary for a single tenant to afford to rent a 420-square foot room now stands at around £50,000, with a family of four needing a hefty £93,000 to be able to afford the rental on a suitable property. Rental charges in Dubai aren’t the highest in the world, but are more expensive than in the majority of similar locations. For example, it’s cheaper to rent quality accommodation in London, Tokyo, Amsterdam, Paris, Melbourne or Miami than it is in Dubai.
Even average lease rates in EU headquartered Brussels as well as Barcelona, Madrid, Vienna and Frankfurt are less than half as pricey as their Dubai equivalents. Last year’s Mercer’s cost of living survey placed Dubai's cost of living as the 21st most expensive of 209 world cities, and a Savills survey confirmed the need for a generous expat salary. Analysts agree the high cost of accommodation is pricing expat residents out, with many turning to flat-shares to decrease the financial burden.
According to local real estate firms, the supposedly ongoing attempts to increase the supply of affordable housing units seem to have stalled, even although demand is rising and developers could be sure of strong interest. Only 18 per cent of new developments in 2015 came into the ‘affordable’ category, a fall from the previous year’s 22 per cent.
Source: Gulf News
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