Property rental prices 'out of control'

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RENTAL ROW: Landlords need to be realistic regarding property rental charges, say poll respondents. (Getty Images)

The message from Arabian Business readers to property landlords in the Gulf region is loud and clear.

An online poll on Thursday asked what you thought of the current property rental market in the region and nearly 90 percent of respondents have hit out at the soaring prices.

Despite a report out on Wednesday saying rental prices in Dubai had stagnated for a second consecutive quarter, a huge majority of you are unhappy about how much rental property in the region costs.

The report by Asteco said that while the emirate had seen “no significant residential rental increases” quarter-on-quarter in the three months to the end of June, year-on-year rents in Dubai had climbed by almost 22 percent.

And that's unacceptable, according to those who took part in our poll. Sixty percent believed the situation was out of control while just under another 30 percent hit out at landlords for pricing their properties out of the market for average-earning tenants.

Just three percent of respondents thought that the regional rental market still offered good value for money while another six percent said, despite price increases, renting was still a good option to take.

A report in May by the research unit of the Department of Planning and Economy in Abu Dhabi found low and middle-income workers, who make up 85 percent of the population, had been the hardest hit by the rising cost of living.

The report estimated that middle-income earners were spending an average of 45 percent of their income on housing.

With economies around the world slowing, the UAE has been able to attract high-quality talent thanks to its buoyant economy.

However, it is a concern among many major employers in the region that many prospective staff will change their minds after discovering the high cost of accommodation.

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READERS' COMMENTS

Suicide
Posted by Saeed Iqbal, Sharjah, UAE on Monday 28 July 2008 at 08:32 UAE time


I think this issue will burn in its own flames and will be the major factor of crippling the UAE economy. With these kind of rents there is no way this country will see long term development. If one can't afford to own a small business anymore then what the economy would be like. I am struggle to find a place for my band to practice, which is my hobby. There is none which I can afford to rent. This is addition to my frustration and of many others.

Rental increasing day by day
Posted by thomson, auh, u.a.e on Monday 28 July 2008 at 08:07 UAE time

Really it's a bit of a surprise to increase house rent hike day by day. We can't be able to live here with family as a middle income group as far the concern to hike the cost of living as education for children, clothing, food etc. Better to send the family to our home country to live there satisfactorily and to visit them yearly thrice go through low budget airline. We can be saved 75% which we are earning here. We never be earned for our future as middle income category living with family here

Properties in Dubai
Posted by Nagarjuna, Dubai, UAE on Sunday 27 July 2008 at 11:44 UAE time

I would agree to all the comments above about people running businesses as well as people leaving family, sacrificing their emotions for a better living for their kin. I am still a bachelor right now and i do not want to buy a house here ever. My father was an athlete and i was a an athlete too in my heyday. Now if i get married and have kids i cant even think of making sportsmen out of them. There is no community living over here. Even if you are making good money it is quite a challenge to do all these things. If i can see all these combinations of above and my comments come alive then i would definitely think of spending more here which anyway with the current situation would not happen.

PROPERTY RENTAL PRICES OUT OF CONTROL
Posted by Nirmesh Tiwari, Dubai, UAE on Sunday 27 July 2008 at 09:27 UAE time

These surveys are for only adding fuel to fire, every one living & working in UAE knows for sure the problem of sky rocketing rents is not going to sort out, as we all must understand that we live in a kingdom and not in democracy, so there cant be an end to such problems out of which the Government is making windfall gains.

Stop worrying about these issues, pass all the overheads on to your clients, let it go the way it's going.

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