UAE rent prices rank fourth highest in the world, and what it means for investors.

27/07/2021

According to a recent study by money.co.uk, UAE rent prices are ranked fourth-highest in the world just after Hong Kong, Singapore, and Qatar respectively.  This may not come as a shocking result, nevertheless, this result shows how valuable real estate investment in UAE can be. 

UAE rent prices rank fourth highest in the world, thepropertyinvestor

The report also showed that UAE residents spend 39.85% of their monthly spendings on rent, with a three-bedroom property in the UAE costing an average of $1,921 (Dh7,054) per month for rent. Additionally, the survey also found that the monthly cost of maintaining a family of four is approximately $2,901.

Furthermore, the research data compared the average cost of renting a 3-bedroom property across over 50 global destinations and found that even though Dubai residents spend $1,921 on rent per month, they get the best value for money with bigger apartments. 

The UAE property market has been showing great signs of recovery following the three-year oil price slump that began in 2014. This is further fuelled by people who are upgrading to larger homes with outdoor amenities amid a remote working and learning trend sparked by the Covid-19 pandemic.

What does this mean for investors?

The high rental income may be a good reason to invest in Dubai properties, however, there are several other reasons as well. For instance, the UAE Government has put in place several initiatives such as; residency permits for retirees and remote workers, the 10-year golden visa program, and the recent slash of the cost of setting up a business in Abu Dhabi. These initiatives trigger an inflow of expats and investors alike, thereby increasing housing demand. 

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