Soaring Rent Prices Leave Dubai Residents Thinking About Making a Move

Soaring Rent Prices Leave Dubai Residents Thinking About Making a Move
by
  • 87% agree rising rent prices will negatively impact standard of living
  • 25% say they would have to relocate outside of UAE if rent prices continue to rise
  • 82% say they will not consider buying property in Dubai if prices continue to rise

The rising costs of rent and property prices are common concerns among Dubai residents. In a recent YouGov survey, nearly one-third of online respondents living in Dubai (32 percent) live in a one-bed apartment, followed by slightly over one-quarter (27 percent) living in a two-bed apartment. Over half of all online respondents (56 percent) live with their spouse and just over one-third (35 percent) with their children.

The majority of online respondents (83 percent) rent, with 8 percent owning the property they currently live in. Female respondents (89 percent) and Westerners (91 percent) are more likely to rent as opposed to own the property they live in. The majority of online respondents have been renting the property they live in for less than two years (74 percent).

Sixty-five percent of online respondents reported an increase in their rent within the last 12 months by an average increase of 16 percent. Almost half of those renting reported they would have to relocate to another area in Dubai if rent continues to increase (46 percent). Furthermore, slightly over one-quarter (28 percent) reported they would have to relocate to another country outside of the UAE if rent prices continue to increase.

Nine in 10 (92 percent) online respondents believe property prices across Dubai have increased in the last 12 months by an average of 25 percent.  Nearly one-quarter (23 percent) would consider buying property in Dubai within the next 12 months, however 6 in 10 respondents reported they would not consider buying. More males (25 percent) and Westerners (28 percent) are interested in buying property in Dubai within the next year compared to female respondents (18 percent), Expat Arabs (24 percent) and Asians (16 percent).

Interestingly, 8 in 10 respondents (83 percent) believe the property market in Dubai will go through another “boom and bust” cycle, with a larger percentage of Westerners (56 percent) and those belonging to the eldest age group 40+ (56 percent) strongly agreeing with this. Although one-quarter of online respondents believe increasing property prices will benefit the economy of Dubai, the vast majority (87 percent) believes it will have a negative impact on their standard of living.

Slightly over half (51 percent) of all online respondents believe Dubai is a safe location for investment, with 4 in 10 (39 percent) agreeing the housing market supply will grow at the same pace as demand. The majority of respondents believe rent (86 percent) and property value (74 percent) will increase in the next 12 months, however slightly over one-third (36 percent) believe property price increases are being exaggerated by the media. Looking forward, 8 in 10 (82 percent) respondents will not consider buying property in Dubai if the price of property continues to increase.

Data collected among 132 Dubai residents using the YouGov online panel from September 26 – 29, 2013 and is representative of the online population in Dubai.

 

 

   

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