Dubai cost of living has become more affordable, according to Savills’ Live/Work Index, but not according to local expats. In 2014, the city was ranked at the 9th position. That is one spot lower compared to the 2013’s ranking. Back in 2008, when the company published the very first edition of its index, Dubai was ranked 8th.
Savills’ Live/Work Index lists the cities with the highest living, renting and working cost in the world. In other worlds, it ranks the most expensive places for companies to locate their employees. The report examines 12 different cities among which are New York, London, Sydney, Tokyo, Hong Kong and others.
According to the research, compared 2008, the cost of living and working in Dubai has dropped by 16%. In addition, prices have decreased by more than 28% over the last six years, the report states.
It is not understandable how this conclusion and estimates are made having into consideration that all officially released data about inflation and cost of living in Dubai shows skyrocketing inflation. In addition, the majority of expats residing in Dubai report and extensively complain about ever increasing consumer prices and services charges, administrative fees.
Nevertheless, the report notes that the emirate’s volatility tendencies continue to remain strong. During the first half of 2014 alone, residential market prices in Dubai witnessed a rise of 22.8%, although in the second half of the year posted nearly the same decline. The company adds that the measures adopted by the government, like mortgage caps and the increased property transfer taxes, seem to have a limited effect on the market. The report states that this may be due to the fact that investors now know that the current property prices are still lower compared to their 2008 peak level.
The index also mentions that rental prices in Dubai have registered a jump. Between January 2014 and June 2014, their rate increased by 12%, but since then due to the enormous supply of newly completed homes rents are actually declining. Therefore, the report concluded that Dubai’s reputation of a highly volatile market will persist in the future.
The report finally adds that despite the rising prices, the long-term prospects for Dubai are very positive.
