Dubai’s housing crisis is deepening as the influx of crypto millionaires, bankers relocating from Asia and wealthy Russians drive up rental prices, making it more like a playground reserved for the super-rich. Ghida and her husband, who had been paying approximately $3,000 a month, were evicted by their landlord, who then advertised the property for twice the price.
The couple is suing the landlord for breaking rental rules. Average annual rent for a villa in the emirate jumped 26% in the year through February to reach $80,436, while average apartment rents soared 28% to almost $27,225, according to real estate adviser CBRE Group. The UAE has started offering long-term visas to select individuals, but the majority of foreign workers have no clear route to attain permanent residency or citizenship.
Residents look for opportunities elsewhere
Dubai has undergone significant changes in recent years. A rise in living and business costs in 2018 led to many residents leaving, while the COVID-19 pandemic resulted in job losses and further departures. Families are now downsizing or looking for opportunities in neighboring Saudi Arabia, which is competing with Dubai for talent and business.
While the pandemic initially led to a dip in Dubai’s rental costs, prices have since increased beyond pre-pandemic levels. Despite officials claiming that price rises are more modest than elsewhere, high inflation globally has impacted spending power. Dubai’s ranking on the Mercer list of most expensive places for expatriates has risen from 90th a decade ago to 31st last year.
As a result, the cost of living is now so high that both parents need to work, and tuition fees are often over $10,000 per year, leading some families to move back home as they can no longer afford the cost of living in Dubai.
