Dubai rents to fall, says study
According to a recent survey conducted in Dubai, the emirate's high rents will not last for long, while compared to other areas of the world, Dubai rents take up a larger percentage of locals' income on average.
In all, the survey questioned 412 property owners and renters in Dubai, 92 per cent of whom maintained that rents take up a larger proportion of Dubai residents' income than in place like the UK, Australia and the United States, according to Khaleej Times.
Seventy-two per cent of respondents said that they spent half or more of their annual income on home rentals. Sixty-seven per cent said that this made living in Dubai 'unviable' in the medium to long term, and that the trend would have to change.
Almost 87 per cent said that rentals are unsustainable at current levels in the emirate, despite the fact hat only 45 per cent felt that the sale prices of properties were too high in Dubai.
Thirty-two per cent of the respondents expressed certainty that rentals would come down in the next three years, while a majority (47 per cent) said they were 'cautiously optimistic' of rents subsiding to lower levels.
Sixty-two per cent said that the mortgage market in Dubai is still "nascent," and that schemes such as rent-to-buy are either non-existent or very rare, while 21 per cent felt that products were growing to meet the needs of property buyers.