Abu Dhabi rents are second-highest in the world

[Levina]

http://www.thenational.ae/business/property/abu-dhabi-rents-are-second-highest-in-the-world
Am i surprised? no i am not.


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Abu Dhabi rents are second-highest in the world
Lucy Barnard

• Average monthly rents in Abu Dhabi are the second most expensive in the world, exceeded only by those in London, a new report has shown.
  
  According to CBRE’s Global Living Report, average monthly rents in Abu Dhabi now stand at US$2,649, while in Dubai which came sixth on a global poll, they reached $2,317.
  
  London was revealed as the most expensive city in which to lease a home with monthly rents of $3,245 while Singapore, Los Angeles and New York claimed third, fourth and fifth spots respectively.
  
  Tenants in Abu Dhabi also saw the second highest rent rises in the world over the past year, with increases across the board of 12 per cent, the report said.
  
  Edinburgh was the only world city to see higher rent rises last year with increases of 19 per cent, while despite a property market slowdown in Dubai, the city still saw the seventh highest rent increases in the world last year with average rises of 7 per cent.
  
  However, when looking at house prices rather than rents neither Abu Dhabi nor Dubai featured in the top 10, the report said where Hong Kong, London and New York were the leaders.
  
  Dubai emerged as the 11th most expensive residential location in the world, according to the report with house prices per square foot standing at $452, while Abu Dhabi came in 14th spot with prices per sq ft of $379.
  
  By contrast house prices in Hong Kong stood at $1,416 per sq ft and in London they were $1,025.
  
  The combination of high rents and relatively low house prices combined to give Abu Dhabi investors the fifth highest residential property yields in the world the report said with annual returns of about 7 per cent. Dubai residential yields came out seventh highest in the world last year at about 6.5 per cent.
  
  The report was published on the first day of the Cityscape property exhibition in Dubai amid news that prime house prices in the city are continuing to fall amid a market slowdown.
  
  “We conducted this research because wherever we went in the world clients wanted to know how residential investments compared with each other,” said Jennet Siebrits, head of residential research at CBRE.
  
  “What we discovered was that the Dubai and Abu Dhabi residential markets are considered ‘affordable’ when compared with London, New York or Hong Kong,” she added. “Both Abu Dhabi and Dubai have very high yields and aren’t subject to tax which is very attractive to international investors.

 

[waleed3601]

then doha should be no#1.
the rents here are much more as compare to dubai according to a friend who shifted here told me.
a 2 bedroom used to be 4500/- a month here in 2010 and now it costs 6000/-.
can u fucking believe this shit m8?

 

[Levina]

then doha should be no#1.
the rents here are much more as compare to dubai according to a friend who shifted here told me.
a 2 bedroom used to be 4500/- a month here in 2010 and now it costs 6000/-.
can u fucking believe this shit m8?

The thing is...
In Abudhabi the rent has pretty much remained stable in last 5 years...believe it or not.
In 2010 it costed Dhs 6000/- (per month)for 1 bedroom flat, now it is about Dhs 6500/- per month for a 2 bedroom flat.

 

[Saif al-Arab]

Rents are overall expensive in the GCC. In particular UAE, Qatar and Kuwait.

One has to remember that there is zero taxation in the GCC which would be/is unthinkable in most of the world. Most commodities and services are also cheap be it oil, gas, water, electricity, food, public transport etc. Education and health care comes for free as well.

So expesive rents makes sense.

Anyway there is a need to introduce universal taxation for both locals and non-locals and when/if that happens the need for salaries to increase (public especially) should also be on the agenda.

Economic reforms are necessary.

 

[Levina]

Rents are overall expensive in the GCC. In particular UAE, Qatar and Kuwait.

One has to remember that there is zero taxation in the GCC which would be/is unthinkable in most of the world. Most commodities and services are also cheap be it oil, gas, water, electricity, food, public transport etc. Education and health care comes for free as well.

So expesive rents makes sense.

Anyway there is a need to introduce universal taxation for both locals and non-locals and when/if that happens the need for salaries to increase (public especially) should also be on the agenda.

For expats, child education is not free, its expensive(a friend of mine was telling me that child education is expensive in Australia, but later i realised it costs just as much in UAE).
Health insurance- free
W&E- rates have changed in last one year. But compared to other emirates the rates are lower in Abudhabi.
Oil- Yes, its cheaper than a bottle of water. But then again now the rates fluctuate according to international rates.
Public transport- cheap...
Taxi - damn expensive. Thats why ppl apply for license as soon as they land in UAE, having your own car helps.
Food- am not so sure its cheap. All the hotels that I've been to are expensive. (Damn a room for a night costed me Dhs 850/- in RAK).
*****
salaries- are better...much better than other emirates, i have to agree.

 

[nForce]

Highest is Mumbai..period...

 

[Levina]

Highest is Mumbai..period...

In India?
Yes.

 

[nForce]

In India?
Yes.

Comparing it with anywhere in the World.

It's not like, you are getting paid in New York and paying rent in Mumbai for an apartment. You pay rent, where you live, where you work.
There was this comparative study, a recent one. I will share the link if I can find it.

 

[Levina]

Comparing it with anywhere in the World.

It's not like, you are getting paid in New York and paying rent in Mumbai for an apartment. You pay rent, where you live, where you work.
There was this comparative study, a recent one. I will share the link if I can find it.

Gotcha!
You meant compared to the salary one gets rents are high. Makes sense to call Mumbai expensive.

 

[Shot-Caller]

Rent is pretty high in dubai if you keep the salaries in mind. I'm not sure if other emirates offer better salaries or not.

(Damn a room for a night costed me Dhs 850/- in RAK).
*****

Was it a three star hotel or a four star?

 

[nForce]

Gotcha!
You meant compared to the salary one gets rents are high. Makes sense to call Mumbai expensive.

Yup.. can't flatten the cost on a linear scale with the conversion rates.

 

[Maarkhoor]

Am i surprised? no i am not.


*****************************
Abu Dhabi rents are second-highest in the world
Lucy Barnard

• Average monthly rents in Abu Dhabi are the second most expensive in the world, exceeded only by those in London, a new report has shown.
  
  According to CBRE’s Global Living Report, average monthly rents in Abu Dhabi now stand at US$2,649, while in Dubai which came sixth on a global poll, they reached $2,317.
  
  London was revealed as the most expensive city in which to lease a home with monthly rents of $3,245 while Singapore, Los Angeles and New York claimed third, fourth and fifth spots respectively.
  
  Tenants in Abu Dhabi also saw the second highest rent rises in the world over the past year, with increases across the board of 12 per cent, the report said.
  
  Edinburgh was the only world city to see higher rent rises last year with increases of 19 per cent, while despite a property market slowdown in Dubai, the city still saw the seventh highest rent increases in the world last year with average rises of 7 per cent.
  
  However, when looking at house prices rather than rents neither Abu Dhabi nor Dubai featured in the top 10, the report said where Hong Kong, London and New York were the leaders.
  
  Dubai emerged as the 11th most expensive residential location in the world, according to the report with house prices per square foot standing at $452, while Abu Dhabi came in 14th spot with prices per sq ft of $379.
  
  By contrast house prices in Hong Kong stood at $1,416 per sq ft and in London they were $1,025.
  
  The combination of high rents and relatively low house prices combined to give Abu Dhabi investors the fifth highest residential property yields in the world the report said with annual returns of about 7 per cent. Dubai residential yields came out seventh highest in the world last year at about 6.5 per cent.
  
  The report was published on the first day of the Cityscape property exhibition in Dubai amid news that prime house prices in the city are continuing to fall amid a market slowdown.
  
  “We conducted this research because wherever we went in the world clients wanted to know how residential investments compared with each other,” said Jennet Siebrits, head of residential research at CBRE.
  
  “What we discovered was that the Dubai and Abu Dhabi residential markets are considered ‘affordable’ when compared with London, New York or Hong Kong,” she added. “Both Abu Dhabi and Dubai have very high yields and aren’t subject to tax which is very attractive to international investors.

Sis Dubai rock high

 

[Levina]

Rent is pretty high in dubai if you keep the salaries in mind. I'm not sure if other emirates offer better salaries or not.

I think salaries in Dubai are low compared to Abudhabi.

Was it a three star hotel or a four star?

4 star hotel.

 

[Saif al-Arab]

For expats, child education is not free, its expensive(a friend of mine was telling me that child education is expensive in Australia, but later i realised it costs just as much in UAE).
Health insurance- free
W&E- rates have changed in last one year. But compared to other emirates the rates are lower in Abudhabi.
Oil- Yes, its cheaper than a bottle of water. But then again now the rates fluctuate according to international rates.
Public transport- cheap...
Taxi - damn expensive. Thats why ppl apply for license as soon as they land in UAE, having your own car helps.
Food- am not so sure its cheap. All the hotels that I've been to are expensive. (Damn a room for a night costed me Dhs 850/- in RAK).
*****
salaries- are better...much better than other emirates, i have to agree.

Levina, my comment was just a general comment about the overall situation in the GCC without going into too many details.

I was talking about locals when I said that public education is free.
In my eyes it's fully understandable that education is not for free for non-locals. Non-locals are tax-exempt and they have free access to health care. Most non-locals send their children to private schools to begin with. Locals have to pay to send their children to private schools as well.

GCC countries are essentially social welfare states while capitalism rules supreme at the same time although the economy needs to be further liberalized.

Well, although I have visited all GCC countries and know them very well I was mostly talking about KSA in my initial post. KSA is much cheaper for locals and non-locals than UAE.

Check this out if it has any interest:

Cost of Living in Saudi Arabia. Prices in Saudi Arabia. Updated Oct 2015

Cost of Living in United Arab Emirates. Prices in United Arab Emirates. Updated Oct 2015

 

[Levina]

Sis Dubai rock high

The issue with Dubai is that the rent fluctuates...alot.
About 4 years back flats were dirt cheap in Dubai. But it has not been so with Abudhabi, the city(and its rents) were stable even when recession had hit, let me remind you Dubai was one of the worst effected back then.