Dubai: Living costs in Dubai are set to surge for a fourth straight year as demand for accommodation, education and healthcare outpaces supply, according to a Dubai-based recruitment consultancy.
Rental costs for two-bedroom apartments in the emirate rose as much as 47 per cent during the last year, with rentals for three-bedroom apartments now $4,000 per month - just 13 per cent less than the average of the best areas in Geneva, Kershaw Leonard it said in a report.
Living costs rose between 15 per cent and 20 per cent in each of the last three years, according to the Cost of Living Dubai Report.
"Life is getting increasingly expensive," Mike Hynes, managing director of Kershaw Leonard, said. "Demand is outpacing supply massively."
Still, apartment rental growth may ease next year as more supply comes on stream, although the cost of renting houses will continue to rise, Hynes said.
The cost of primary education is as much as 28 per cent higher this year than in 2006, or Dh59,000 compared with Dh46,000, according to the report.
The cost of visiting a doctor at two of Dubai's biggest hospitals has more than doubled in the last two years, said the report.
Health insurance for Dubai with Britain-based BUPA costs 23 per cent more than a year ago, and is in the same pricing category as Monaco, according to the report.
"The cost to smaller companies in Dubai may rise if they are required to provide cover for their employees and their dependents," Hynes said.