By Staff writer
Dubai is ranked eighth in a list that compares total housing and office rental costs on a per capita basis around the world
Dubai has been ranked eighth in a list of the world's most expensive cities in which to accommodate staff, according to the the Savills Live-Work Index.
The list which compares total housing and office rental costs on a per capita basis around the world showed that costs in Dubai were less than half that in New York which was judged the most expensive.
According to Savills, Dubai costs totalled $53,913 compared to $114,010 in New York, while Hong Kong and London were second and third respectively.
David Godchaux, CEO of Core, UAE Associate of Savills, said: “Despite the fall in oil prices, which has had a negative impact on property prices and rent levels within the wider Gulf region as a whole, it is interesting to see that Dubai remains one of the top 10 most expensive cities to live and work in as per the Savills Index.
“We attribute this to the perception by corporate occupiers and employees alike that the market has matured and is more resilient to external macro-economic shocks than in the past.
“This has resulted in a relatively steady level of demand for both office space and residential units.
“One may have expected that Dubai would have become less expensive in comparison to other cities, but even with this decrease of 7 percent over the past 12 months, it is still able to maintain its position in the top 10, showing the confidence of corporate occupiers and employees in the long-term for this market.”
Globally, for the last two and a half years, London has held top spot, reflecting the strength of its economy and high demand for space from a wide variety of occupiers, but the impact of currency falls post EU referendum has made London very much more competitive on the world stage, reducing occupation costs in dollar terms by -11 percent since the beginning of 2016.
Meanwhile, rents for both residential and office properties in New York rose slightly in the early part of the year and, although office rental growth is now weakening, overall accommodation costs, in local currency, rose 2 percent in H1.
Savills said Dubai, Lagos and Moscow have all seen rent falls in both office and residential accommodation as a result of falling occupier demand in economies closely affected by oil price and businesses related to oil.
Real estate markets in Dubai and Moscow are denominated in US dollars or related currencies so have not been affected by currency movements against the dollar, it added.For all the latest real estate news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.