The majority of Dubai residents believe that the high cost of home rentals relative to other parts of the world such as the UK and the US makes living in the city "unviable" in the long-term, according to a recent survey.
An overwhelming 92% of the 412 individuals who took part in the survey said rents take up a larger proportion of Dubai residents’ income than in other cities.
Almost three-quarters (72%) of the respondents said that they spent half or more of their annual income on home rentals, while 67% stated that the current situation made living in Dubai "unviable" in the medium- to long-term.
The survey was conducted by a research division of Communicraft and commissioned by DSL Exhibitions, organisers of the upcoming Resale and Rental Property Show (The R&R Show), which is to be held on the 8th and 9th of September 2006 at Dubai's Crowne Plaza Hotel. Reflecting Dubai's diverse population, 60% of the sample were nationals from the Indian sub-continent, 20% were UAE nationals, 15% were expatriates from Arab nations while 5% were nationals of other countries. All respondents had lived in Dubai for three years or more.
Interestingly, while less than half (45%) of the respondents felt that the sale prices of properties were too high in Dubai, almost 87% said that rentals are unsustainable at current levels. However, only 32% of the respondents said they were 'sure' rentals would come down in the next 3 years. 43% of the respondents predicted that the growth of the secondary market would soon begin to affect developers' prices.
In other findings, about two-thirds (62%) of the respondents considered Dubai's mortgage market to be immature compared with other parts of the world, with few schemes such as 'rent-to-buy' on the market. 82% felt that mortgage was also "too expensive" when compared with developed markets. Nonetheless, 21% felt that products were growing to meet the needs of property buyers.
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