UAE | Housing & Property

Prohibitive rents will make some expats leave

A Gulf News online poll this week showed what a major concern rising rents were, with 40 per cent of respondents saying they would quit the UAE because of them.

  • By Daniel Bardsley, Staff Reporter
  • Published: 00:00 July 25, 2006
  • Gulf News

Dubai: There is one topic that expatriates talk about even more often than the traffic - and that's the hike in rents.

Only those lucky enough to own a property or have accommodation provided by their employer seem to have escaped huge increases.

A Gulf News online poll this week showed what a major concern rising rents were, with 40 per cent of respondents saying they would quit the UAE because of them.

A further 33 per cent said high rents might force them to move in the coming year, while 18 per cent were looking to house share. Just nine per cent said they would stay and pay the price.

T.N. Samarawickrama a cleaning supervisor, took drastic action a year ago when his rent kept spiralling upwards - he sent his wife back to the couple's native Sri Lanka.

The 59-year-old has taken a room in a villa after the rent on the apartment he and his wife shared with their son went up from Dh28,000 a year when they first took it to Dh45,000.

"I thought we would be a family here but unfortunately it became too hard. The expenses have gone up so much. All the living costs have increased," he said.

For many people, the answer to the rent rises is simple: they are going back home.

Plenty of expatriates come to the UAE to save money and if they can no longer do that, there is little point in being here.

Patrick Higgins, 32, a supply chain manager from the Republic of Ireland, said he could eventually fall into this category.

"I have to question whether it will be sustainable for me in the future. It is tax free, but I have to ask whether it's still as attractive a place to live in as before.

"I would have to consider whether to move back because, like everybody else, I'm here to save. You used to be able to save a lot more," he said.

Egyptian Nahed Taher, 28, also fears that rent hikes could lead to her leaving the UAE.

The housewife has only lived here for a few months but she has already felt the effects of the city's rent rises.

"We first came in February to look for houses and then came back again in May and we noticed a big increase. The place we are in is smaller than it would have been if we'd taken somewhere in February. I would consider leaving because I have a place in my home country. It's something I'll consider," she said.

Lebanese sales manager Amr Al Hussaini, 30, is also new to Dubai but like Taher he too is wondering how long he will stay.

"I first came and looked at rental costs here one-and-a-half years ago, and then you could get a two-bedroom place for Dh65,000. Now it costs Dh85,000 or Dh90,000. I used to live in Saudi Arabia so if it goes up a lot most probably I will go back there," he said.

Yassine Hyat, 27, a sales manager from Morocco, has seen the rent on his flat on Shaikh Zayed Road increase from Dh3,800 a month to Dh5,300. He said he would rather leave than move into a less desirable property.

"When it becomes too expensive I will leave. I don't want to move somewhere bad just so I can stay in the country," he said.

Travel agent Jean Roberts, 52, from the United Kingdom, took a different view, saying she would rather move to a cheaper place than leave Dubai.

Roberts and her husband used to rent a villa in Umm Sequim, but because of increases in their rent they have moved to Mirdif, which is cheaper but involves a longer drive to work.

"Our villa in Umm Sequim was Dh125,000 a couple of years ago, but it went up to Dh175,000. You just have to stay here and downsize. It's not easy to go back to the UK and find a job when you are in your 50s," she said.

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