Dubai the 14th most expensive city in the world for tenants
Rental accommodation in Dubai now averages almost $3,500 (AED 12,850) per month, according to a report from consultancy firm ECA International.
The price tag makes the emirate the 14th most expensive city in the world for tenants, behind places such as Hong Kong, Tokyo, New York City and London.
ECA surveyed 92 cities around the world, basing its figures on the average price of renting a three-bedroom apartment.
“Dubai and Doha have seen unprecedented growth in recent years as they establish themselves as premium business centres and luxury cities,” the report stated. “This development, coupled with a continued influx of expatriates, has resulted in new very high standard properties being erected, driving up the average rental price.”
In an effort to control rental costs, authorities in Abu Dhabi and Dubai have introduced annual rental caps on residential properties.
In Dubai the government cut the cap by more than half at the beginning of this year. Landlords are now only allowed to increase rents by a maximum of 7% per annum, compared with 15% last year.
Source; Arabian Business