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Wed 23 May 2007 02:13 PM

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Dubai rents among world's priciest

The emirate has been ranked the 14th most expensive city for tenants.

 

Dubai is the one of the most expensive cities in the world in which to rent accommodation, according to a study released today.

 

The emirate ranked 14th out of 92 cities surveyed by consultancy firm ECA International, based on the price of renting a three-bedroom apartment.

 

Hong Kong topped the list, with an apartment in a popular district costing around $8,592 per month, followed by Tokyo, New York and Moscow.

 

At the other end of the scale, Nairobi, Kenya, ranked the world's cheapest city, with Charlotte and Atlanta in the US close behind.

 

Muscat was judged the sixth cheapest location to rent accommodation in.

 

The news of Dubai's position on the list will come as no surprise to the city's residents, who have seen the cost of accommodation rocket in recent years.

 

Residential property rental rates have risen, on average, by an estimated 65% in the past two years, which has raised concerns over impact that this is having on overall consumer price inflation.

 

The International Monetary Fund (IMF) estimates inflation in the UAE at around 10%, but said it could be much higher in Dubai itself.

 

According to a survey by HSBC and YouGov Siraj, 55% of UAE businesses are worried about inflation, especially the increasing cost of accommodation.

 

In an effort to control rental costs, the Dubai authorities introduced an annual rental cap, which it cut 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.

 

Many banks have predicted that the rent cap, coupled with the expected doubling of residential units in Dubai by 2008, will bring down inflation, with National Bank of Abu Dhabi (NBAD) stating inflation will fall to its lowest level in three years in 2007.

 

If inflation levels do not drop there is the danger that soaring cost of living will deter workers from living in the emirate, which could cause damage to the economy.

 


 

Rank 2006 Country Location
1 HONG KONG Hong Kong
2 JAPAN Tokyo
3 UNITED STATES OF AMERICA New York NY
4 RUSSIA Moscow
5 KOREA REPUBLIC Seoul
6 UNITED KINGDOM London
7 INDIA Mumbai
8 CHINA Shanghai
9 VENEZUELA Caracas
10 FRANCE Paris
11 CHINA Beijing
12 VIETNAM Ho Chi Minh City
13 TURKEY Istanbul
14 UNITED ARAB EMIRATES Dubai
15 SINGAPORE Singapore
16 ITALY Rome
17 SWITZERLAND Geneva
18 COLOMBIA Bogota
19 RUSSIA St Petersburg
20 NIGERIA Lagos
21 NETHERLANDS Amsterdam
22 SWITZERLAND Zurich
23 UNITED STATES OF AMERICA San Francisco CA
24 UNITED STATES OF AMERICA Washington DC
25 MEXICO Mexico City
26 INDONESIA Jakarta
27 TAIWAN Taipei
28 ITALY Milan
29 INDIA New Delhi
30 UNITED STATES OF AMERICA Los Angeles CA
31 BRAZIL Rio de Janeiro
32 SPAIN Madrid
33 NORWAY Oslo
34 IRISH REPUBLIC Dublin
35 UNITED STATES OF AMERICA Miami FL
36 UNITED STATES OF AMERICA New Jersey
37 KUWAIT Kuwait City
38 DENMARK Copenhagen
39 SWEDEN Stockholm
40 SAUDI ARABIA Jeddah
41 BRAZIL Sao Paulo
42 AUSTRALIA Sydney
43 UAE Abu Dhabi
44 POLAND Warsaw
45 THAILAND Bangkok
46 SPAIN Barcelona
47 UNITED STATES OF AMERICA Boston MA
48 PORTUGAL Lisbon
49 PHILIPPINES Metro-Manila
50 QATAR Doha
51 UNITED STATES OF AMERICA Chicago IL
52 AUSTRIA Vienna
53 CANADA Toronto
54 BAHRAIN Manama
55 EGYPT Cairo
56 AUSTRALIA Perth
57 UNITED KINGDOM Birmingham
58 BELGIUM Brussels
59 GERMANY Berlin
60 FINLAND Helsinki
61 MALAYSIA Kuala Lumpur
62 NEW ZEALAND Auckland
63 UNITED KINGDOM Aberdeen
64 UNITED ARAB EMIRATES Sharjah
65 ARGENTINA Buenos Aires
66 UNITED STATES OF AMERICA San Diego CA
67 SOUTH AFRICA Johannesburg
68 HUNGARY Budapest
69 GERMANY Dusseldorf
70 GREECE Athens
71 GERMANY Hamburg
72 GERMANY Frankfurt
73 CZECH REPUBLIC Prague
=74 NETHERLANDS Rotterdam
=74 UNITED KINGDOM Edinburgh
76 CANADA Montreal
77 AUSTRALIA Melbourne
78 CHILE Santiago
79 UNITED KINGDOM Cardiff
80 PERU Lima
81 UNITED STATES OF AMERICA Houston TX
82 AUSTRALIA Adelaide
83 ECUADOR Quito
84 NEW ZEALAND Wellington
85 UNITED STATES OF AMERICA Minneapolis MN
86 GHANA Accra
87 OMAN Muscat
88 UNITED STATES OF AMERICA Dallas TX
89 TURKEY Ankara
90 UNITED STATES OF AMERICA Atlanta GA
91 UNITED STATES OF AMERICA Charlotte NC
92 KENYA Nairobi

 

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