The recent Worldwide Cost of Living Survey has revealed that Dubai has become more affordable for residents as the emirate has been ranked 94th, 16 places lower than last year.
The index, published by the Economist Intelligence Unit, measures the cost of an expatriate lifestyle in more than 130 cities. It takes into account the weighted average of the prices of 160 products and services, including housing, food, clothing, transport and household goods as well as the relative strengths of currencies and economies.
The main reason for the cost of living easing in Dubai is that the rents have been steadily dropping, off-setting some price increases.
This correction was necessary as, in the past, rents in Dubai were often prohibitively expensive for both residents and businesses. Dubai is now a more attractive destination for skilled expatriates and as a place to do business.
It is also expected that the price of some essential commodities will decline in the coming months, further reducing the cost of living.
Unfortunately, in these volatile economic times, it cannot be assumed that the price of goods and services will remain stable. Residents should take advantage of the lower cost of living now, to save for those difficult times which may lie ahead.
