UAE | Housing & Property

High rents force residents to send families home

Abu Dhabi business chamber predicts housing problems will only get worse.

  • By Rayeesa Absal, Staff Reporter
  • Published: 23:37 May 10, 2008
  • Gulf News

  • A typical bachelor accommodation in Abu Dhabi where bedspaces seem to be the only places affordable for new tenants. Pictures are for illustrative purposes only.
  • Image Credit: Ahmed Kutty/Gulf News
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Abu Dhabi: "I miss the smile of my 4-year-old son most," says Shahbaz Chaudhary.

Chaudhary, like an increasing number of expats, had to make the difficult decision to send his family home because the cost of living in Abu Dhabi had become too high. His family went back to India in 2006.

It was not an easy decision, but he had to choose between giving his two young children a good standard of living or keeping them in Abu Dhabi with him in difficult circumstances.

"Rent is the biggest problem. Seeing the way things were moving I knew sending them back was a necessary step."

His family lived with him for eight years before moving to India, where they only meet during his annual 30-day leave. A senior accountant at a private firm, Shahbaz says the current situation is even worse.

Shahbaz and his family used to live in shared accommodation, with the hall of the two-bedroom apartment and a small bathroom to themselves for Dh1,900.

"Now for the same space I would have to pay Dh3,500. The cost of daily essentials has also doubled or tripled and my salary has not kept pace."

If his wife had been earning a salary he probably would not have had to send them back, he says.

People across different sectors of society have been hit by spiralling rents. However, middle and low income households continue to be the worst affected.

According to a recent study by the Abu Dhabi Chamber of Commerce and Industry the housing problems will just get worse. It is predicted that the situation will turn into a serious crisis by next year with a minimum shortage of 20,000 residential units.

"Executive bachelors who pay between Dh2,000 and Dh3,000 per room as well as working bachelors who pay Dh450 to Dh700 for bed space face the increasingly difficult task of finding somewhere affordable to stay. "It is like having an axe over my head all the time ... we could be thrown out or asked to pay extra whenever the house owner feels like it," says Anas M., employed at a maintenance company in Musaffah.

Kristina Riedel, a German who works as a teaching assistant, currently pays Dh130,000 annually for her four-bedroom villa in Khalifa City. She was served an eviction notice a few months ago under the pretext that the owner is to sell the property to his brother.

"I suspect this is a ploy to get a new tenant who would pay much higher rent, as the current value of the place could easily be double what I pay."

Aamir Hussain who had to move house three times in one year, unable to cope with rent hikes, blames the situation on "middlemen".

"These illegal brokers who have established good contacts are hiking rents of apartments to earn more commission on the deal," he says.

Vox Pop

The rent in Abu Dhabi is four times higher than it used to be in 2004. I would say 95 per cent of the people are suffering because of the rent hike. People are less concerned about job security these days and fear the rent even more. In my opinion the situation will remain this way until the next four years."

Abdul Bari
Owner of Al Bab real estate

If I want to live the same way I did two years ago then I would need double the money. The cost of living has gone up drastically and it's not just the rent. The rent is the starting point. Traders use it as an excuse to hike prices."

Marwan Hamad Al Hamad
Palestinian, Marketing personnel

People are fed up with the ever increasing rents. It sure is burning a hole in our pockets. A three bedroom apartment on the same floor as ours was rented for about Dh100,000 till few months ago. Now a new tenant moved in for Dh220,000."

Padma Renjith
Indian, Director of a travel agency

Over the last six months the rent of the room that I share along with 5 others has gone up thrice. It used to be Dh1,250 and now it is Dh1,850. I don't think complaining can help but the way things are going it's unbelievable."

Jamil Hussain
Bangladeshi, Working at a hospital


Have your say
Do you know anyone who had difficulties locating a residence because of the shortage? What happened? Do you think enough is being done to help ease the pressure on the housing market? Tell us at letter2editor@gulfnews.com or fill in the form below to send your comments.


Your comments


Dhs.35000 rent paid two years back is now Dhs.90000, whilst salary increase received is 0%. Unable to cope with the ever increasing rent and essential food prices, I have decided to leave UAE for good. Good Bye
KOSHY
ABU DHABI,UAE
Posted: May 11, 2008, 12:06

WHY DOES THE CONCERNED AUTHORITIES DOES NOT TAKE ANY ACTIONS AGAINST THE MIDDLE MAN, BROKERS, BUILDING WATCHMAN AND REAL ESTATE AGENTS WHO ARE BLINDLY CHEATING THE PUBLIC, SPECIALLY LOW EARNING AND MIDDLE EARNING PEOPLE.
Abdullah
Abu Dhabi,UAE
Posted: May 11, 2008, 11:56

Govts. attention is very much required, increasing the salary of few people who work in Govt. sector will not help. What about the others who work in private sectors. Also strict rules should be put on middle men i.e. Brokers involved in this trade, I recently paid almost 20 % as brokerage fees for the flat I rented.
AP
Dubai,UAE
Posted: May 11, 2008, 11:36

Control on the greedy brokers who's aim to make money in a short period will balance the rent hike. Tenants are ready to pay for the nominal hike.
R. Antony
Dubai,UAE
Posted: May 11, 2008, 11:25

I am a resident of Dubai, currently living with my family in a sharing accommodation. I have been searching for a place since a couple of months now, the rents they are offering are just flying on our heads, searching a affordable flat in Dubai is like searching a pearl in a sandy seashore.
Salah
Dubai,UAE
Posted: May 11, 2008, 11:25

I think until the government intervenes, things will go on.
Adeel
Dubai,UAE
Posted: May 11, 2008, 10:54

The rate at which prices are increasing is just unbelievable. 1 B/R flat that has cost Dhs. 40000 last year is now Dhs. 90000. It is all because of middleman, real estate agents and there is no governmental control over them. Recently gulf news stated a rent hike of 17% in Abu Dhabi this year which is far from reality. Actually rents have gone up by more as I have been searching for flat for the last 6 months to no avail.
Mohammed
Abu Dhabi,U.A.E
Posted: May 11, 2008, 10:32

Standard of Living for Middle and Lower class people became worse and worse in UAE. I am an Engineer renting a bed space in a double Decker coat for 600. What is the condition of Labours?
Habeeb
Dubai,UAE
Posted: May 11, 2008, 10:32

No, not enough has been done. The government have to take more actions to help ease this problem. For example, if there is a 5%-7% cap on annual rent increase regardless whether it is a new or old lease that will solve a lot of problems
joe
Abu Dhabi,UAE
Posted: May 11, 2008, 10:15

I am scared to stay here because of rents.
Kvenu
Abu Dhabi,UAE
Posted: May 11, 2008, 10:12

It is like killing the goose that lays golden eggs for Emiratis. For each family sent home, atleast four people leave UAE. If 25% of the expats send their families back home, groceries, malls, cineplexes, vegetable shops, including houseowners will suffer.
Dr. Vijayakumar
Dubai,UAE
Posted: May 11, 2008, 09:57

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