The cost of renting in the UAE is rising by “unsustainable” levels pushing residents to move out to cheaper locations, property brokers say.
Average annual apartment rents for new tenants in Dubai increased by 5 per cent over the three months to the end of March, while villa rents rose 3 per cent.
It said that at International City on the outskirts of Dubai there were some of the biggest rent rises, with average rents up by 11 per cent during the first quarter of 2014 to Dh50,000 for a one-bedroom flat – equating to an 80 per cent increase over the year.
International City was designed in 2004 as a scheme for low and medium-income residents. But as homes in other locations became more affordable during the global financial crisis, middle-income tenants moved out and rents fell by about 80 per cent in 2009 and 2010.
Rents at Jumeirah Lakes Towers, viewed by many as a cheaper alternative to Dubai Marina, also rose by 11 per cent over the quarter to Dh105,000 for one-bedroom apartment – a 62 per cent increase compared with a year before