High rents in Dubai

While planning to move to Dubai, one should plan about the finances and should budget the living expenses. As rents in Dubai are expensive, rent will be the biggest component of the cost of living in Dubai. What are rents in Dubai like? It’s important to understand this.
 

Expats from all around the world were drifting in hundreds by the day to take advantage of the market expansion in Dubai. Dubai’s financial system was flourishing at that time. The increased rents in Dubai happened suddenly, it was not linear or ongoing. It was exponential in nature. There were no rules and regulations about the rental rates, so the landlords kept on increasing the rents to as much as the renter could afford. The tenants were also making good money as the companies were thriving and so were salaries at that time. So they are able to afford the sky high rents.

This same case can be seen throughout UAE especially Abu Dhabi as it is the next in line for economic expansion. As housing stabilized and the market slowed down because of the economic crisis of 2008, the rents fell very fast. Many investors in real estate in Dubai were not reclaiming their monthly credit expenses in rents and lost their reserves. But still the rents in Dubai are high as compared to elsewhere.

There are very less number of houses in Dubai available for rent. So the rents of available properties are quite high. It is also not easy to buy a property in Dubai. Even if you are able to afford the cost of the property there will be very few properties which are ready to move.

After rent the expenses on entertainment and social activities are the second highest expenditure you are likely to incur. It is quite common in Dubai to have your meals outside in some hotel frequently after working hours.

After these two most heavy expenses you will have to spend the major portion of your money on utility bills. These utility bills are comparable and even higher to those in the west. Then you have to spend money on your insurance, car, schooling of your children and health. Many other expenses like these may make your spending budget high. When all the above are added living in Dubai becomes very expensive.

It has already been said before that the rent of the properties Dubai are very high. So if you are going to Dubai for a job you should negotiate with your prospective employers so that they provide an accommodation to you along with the salary and perks. You may also ask your employers to give to housing allowance which is quite common in Dubai. If your company is not providing accommodation then you may consider sharing an accommodation with others. You may also negotiate with your employers on matters like your fuel cost, family visits to home, health insurance and schooling cost of children etc.

So, before you go to Dubai you should keep an eye on the rents in Dubai so that you can save some money for you when you back home after completing your contract in Dubai.

About Dubai City is the best Dubai City Guide written from a fresh, practical and first-hand perspective; informing on Dubai entertainment, Dubai jobs, Dubai Sightseeing, hotels, travel information and much more.