Residents in Dubai constantly complain about the high rents they are paying and now there’s a proof they are right. A recently published Cost of Living Index shows that UAE rents are indeed very expensive. Rents in the country are ranked fourth highest the world, still by total cost of living, the UAE scores average.
A new Cost of Living Index for 2015 was released by website Numbeo, which shows detailed average prices of goods and services in various countries and cities around the world. The Index is estimated after collecting information from plenty of resources, including data, contributed by nearly 200,000 people globally. The numbers and the current data represent statistics collected over time, so instead of showing precise figures, the Index estimates the average ones. This is useful, especially for expats planning to move in another country or city.
According to the ranking, the United Arab Emirates is the fourth most expensive country for tenants, with a rent index of 66.86. This means that people in Dubai, Abu Dhabi and other emirates within the country are paying more for their rented homes than people in the U.S., the U.K., France, Germany, Japan, and so on.
2015 Top 10 Highest Rents in the World (so far):
- Singapore
- Hong Kong
- Qatar
- United Arab Emirates
- Luxembourg
- Switzerland
- Ghana
- Australia
- Norway
- Kuwait
Three GCC economies are ranked in the top 10 countries with the highest rents, with Qatar leading the UAE with nearly 10 points. However, the UAE falls to 36th position in the overall ranking for cost of living in the different countries. The most expensive countries for living are Switzerland, Norway, Venezuela, Iceland, and Denmark, followed by Australia, New Zealand, Singapore, Kuwait, and the UK. The figures may sound strange, claiming that life in Venezuela is pricier than the U.S. or the UAE, but they actually make sense. The Index estimates the local purchasing power index and Venezuela has the poorest score in purchasing power in the world at only 11.90 points. In comparison, Switzerland, Saudi Arabia, the U.S., Belize and Luxembourg are on top with points of over 114.
The UAE is 13th in the world when it comes to local purchasing power and 12th in the category that compares two of the most important factors – Consumer Price plus Rent Index.
