Soaring rents force expats to rethink move

by Andy Sambidge Sunday, 20 July 2008

Soaring rental costs and skyrocketing inflation are forcing skilled expatriates to snub the UAE capital Abu Dhabi.

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Fears are growing that rent inflation will have an impact on key industries as recruiters say they are struggling to fill mid-level jobs, UAE daily The National reported on Sunday.
Rents for quality apartments in the capital increased by an average of 49 percent in the past year, according to figures released on Saturday by the property services company Asteco.

Vacancy rates, meanwhile, have reached less than five percent in many areas of the city and Abu Dhabi Chamber of Commerce and Industry estimates that there are 8,000 too few homes available in the capital to meet demand.

A report in May by the research unit of the Department of Planning and Economy 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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