Rising Property Rents in Dubai Drive up The Cost of Living

Dubai: There is growing concern among Dubai residents about the rising cost of living as high inflation and spiraling rents are taking a toll on family budgets.  This was disclosed from the findings of a survey by the Department of Economic Development (DED) that observed 55 percent of the respondents expressing worries over the soaring cost of living that is incidentally coinciding with a strong performance of the economy of Dubai.

As a result, nearly 32 percent consumers are looking to slash major expenses. It covered more than 2,000 residents of Dubai in the age group of 20 to 60 and was done in the first quarter of 2013 to dig out broad details of how the consumers are planning to cope with the inflation by slashing utility expenses in telephone bills and other essentials,

The rising rent is jacking up the cost of living and is upsetting all planning. Residents in Dubai and Emirates spend an average 30 percent of the total household budget in rental expenses. The rental rise is making a hard knock on the consumer price index of most of the households.

In Dubai the rents increased a minimum 10 percent in the first quarter of the year. It signaled that the emirate's property market is recovering fast. The rentals spiked most in the popular areas while in other locations it remained more or less stable.

Optimistic

Despite concerns over the cost of living, the study found that the residents were upbeat about the economy in general. In the first quarter of this year there has been more positive consumer sentiment unlike the 74 percent clocked in the fourth quarter of 2012.

On the back of these findings there is a suggestion to hold more household surveys to trace the patterns of spending in Dubai households. That expatriates are spending most of their earnings on rent that is higher than the locals have been confirmed. The silver lining is that despite the cost of housing remaining an area of concern, in other daily aspects of the daily needs the residents of Dubai and the UAE are very satisfied.

Source: http://www.prlog.org/12244639-rising-property-rents-in-dubai-drive-up-the-cost-of-living.html