Business | Opinion
Professionals could find a silver lining in market slowdown
To those who stand on the outside and look in, Dubai's professionals have always been seen as enjoying a certain, rather luxurious, style of living.
- By Linda Mahoney, Special to Gulf News
- Published: 23:14 May 28, 2009
To those who stand on the outside and look in, Dubai's professionals have always been seen as enjoying a certain, rather luxurious, style of living.
It probably has something to do with the seemingly endless sunshine, blue seas and sandy beaches of the emirate, as well as the towering skyscrapers and a wealth of five-star hotels.
In reality, though, while many people have been able to indulge in this type of lifestyle, by far the vast majority of professional expatriates living in Dubai have had to make significant compromises.
Those with the spending power can buy literally anything in this amazing, cosmopolitan city. For those at the other end, or even half-way down the spectrum however, much of Dubai's perceived "luxury" can seem far out of reach.
There is undoubtedly the potential to earn higher wages in Dubai and the UAE as a whole than many other developing and developed countries in the world. Yet there are other considerations that have affected people's decisions to stay or leave the emirate.
When the cost of living is high, the proportion of a wage spent on accommodation can have an enormous impact on a person's desire to remain in a country.
For many, the luxury tag belonged to a different Dubai than the one in which they lived.
Rents and property prices went through the roof in Dubai over the last five years.
Those without significant help from their employer or a very large wage were forced to move out to less expensive areas like Sharjah and Ajman in order to afford to work in Dubai.
Skilled workers as well as upper and middle management could simply not justify the proportion of their wages that was required to live in the kind of property associated with their rank or stage of career.
While a young professional or even couple may have been able to afford to live alone in their home country, in Dubai or Abu Dhabi they were forced to share due to financial considerations.
The worldwide economic crisis was not good news for anyone, and many people have suffered from its affects, but people with a positive frame of mind have also considered that there are some good things to come out of a bad situation.
Families, couples and singles in Dubai are beginning to realise that they can afford to upgrade their accommodation thanks to the major price correction we have seen in the property sector.
People who moved out of Dubai for cheaper living in Sharjah or Ajman, are starting to move back to places like International City.
There is also a shift in population from Abu Dhabi where available property is still at a premium to places on the outskirts of Dubai like Discovery Gardens, which are still easy commutes to the capital.
Meanwhile, with prices dropping by Dh10,000 a year or more, others are able to upgrade within Dubai from small and very basic one-bedroom or studio apartments in some cases, or simply to live on their own in others.
Upscale developments like Arabian Ranches or Dubai Marina that were considered too expensive by a large portion of Dubai's workforce are suddenly back on the menu.
The costs associated with setting up a business in Dubai, things like acquiring visas and trade licenses, have always been a challenge in terms of cost.
But with property prices in both the commercial and residential sectors becoming more realistic we could see an influx of new businesses starting up across the emirate.
Linda Mahoney is CEO of Better Homes.
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