Tenants face 40pc rent increase in parts of Dubai
Meeting the rising costs of living is becoming a near impossible task for some in Dubai in recent years, with rents in some areas jumping a staggering 40 per cent in one year while salary increases pale in comparison.
Speaking of the problem, Sunila Muzawar told Gulf News, "It always went up every year but not as much as 15 per cent in one year. Last year our rent went up by 40 per cent, but when the announcement was made we received another contract with only a 15 per cent increase.” She added that she has seen rents rise more steadily in the last eight years than any other time during her years in the UAE.
The soaring rate of inflation has not made things any easier. “How can you have annual inflation of 15 per cent? It should be less than five per cent. Salaries don't rise like this. If you get a three to five per cent salary increase it is a huge amount," added Muzawar.
"I'm sure they will do another 15 per cent cap. I'm dreading it because on top of this we don't get any maintenance with the cost. If anything goes wrong we have to do it ourselves. It doesn't seem correct," said Muzawar.
As a result of the growing difficulty of making ends meet, many expatriates have been forced to decide whether or not to continue to live in the emirate, which for most, was initially an attraction due to its income potential in comparison to their native countries.
"We do like Dubai, but it's getting to the point where it is becoming an unattractive place to live because it costs so much. We are in a high income group but there is so much pressure with cost of living. If everything went up by 15 per cent people would go nuts," said another Dubai resident.