UAE ranks fourth globally for highest monthly spend on rent

UAE residents ranked fourth globally for spending the highest percentage of their monthly expenditure on rent, according to a new survey. People in the Emirates spend 39.85 per cent of their monthly outgoings on rent, according to the study by UK price comparison website money.co.uk.

The research, which sourced data from cost-of-living database Numbeo, looked at the average cost of renting a three-bedroom property in more than 50 global destinations and compared it with other expenses for a family of four, including food shopping, utilities, transportation and leisure.

Global Rental Expenditure Trends

Hong Kong residents spend the highest on rent globally in comparison with overall monthly outgoings, the money.co.uk survey found. It is also the only territory where the average person pays more for their rent than the rest of their living costs combined. Singapore takes second place, with the average rent taking up slightly more than 47 per cent of average monthly expenditure. This is followed by Qatar, where the average rent of $2,348 amounts to 43.73 per cent of annual monthly expenditure.

Top destinations where rent accounts for maximum household spend every month:

• Hong Kong: Over 50% of monthly outgoings.
• Singapore: 47% of monthly outgoings.
• Qatar: 43.73% of monthly outgoings.
• UAE: 39.85% of monthly outgoings.
• Kuwait: 38.2% of monthly outgoings.

The Dubai Property Market

The UAE property market is showing signs of recovery as people upgrade to larger homes with outdoor amenities amid a remote working and learning trend sparked by the Covid-19 pandemic. Government initiatives – such as residency permits for retirees and remote workers, and the expansion of the 10-year golden visa programme – have also helped to improve sentiment. Dubai and Madrid offer residential tenants the most value for money with bigger apartments, a separate Knight Frank study found.

Price Trends and Community Rankings

Notably, the average annual rent for villas in Dubai stands at AED290,242 ($79,025), almost three times that of apartments. Palm Jumeirah stands as the epitome of opulence and is the only location where the average villa rent exceeds AED1 million a year, making it the crown jewel of Dubai’s real estate.

Apartment rental costs in Dubai:

• Downtown Dubai: Most expensive community (AED 110 per square foot).
• Old Town: AED 107 per square foot.
• Al Nahda: One of the cheapest communities (AED 42 per square foot).
• Al Qusais: AED 48 per square foot.

Cheapest Options for Renters

The cheapest country for renters is Saudi Arabia, where the average monthly rent is just $583, or 19.07 per cent of monthly outgoings, while other expenses add up to $2,477. In Europe, Greece has the lowest rent compared to the cost of living, accounting for 19.73 per cent of the average monthly expenditure. The average rent for a three-bedroom property in Greece is $620, while other costs such as food, transport and clothing come to $2,524.