Cheaper to stay, costlier to study in UAE

The cost of living and working in the UAE has declined as a result of the downturn in property prices, according to the Kershaw Leonard’s UAE Cost of Living Report.

Kershaw Leonard's Managing Partner Mike Hynes said freehold prices for both villas and apartments in Dubai have fallen by as much as 40 per cent in 2010 and tighter bank lending rules seem certain to limit the extent of any short-term rebound.
 
"Villa and apartment rents in Dubai and Abu Dhabi have also fallen by similar amounts. However, while freehold property prices appear to be levelling out and in some cases making some modest gains, rental prices are still heading southbound," he added.

For example, rents for a three-bedroom apartment in Dubai currently range from Dh80,000 to Dh180,000, a steep fall from the highs of two years ago. A three-bedroom apartment in Al Barsha can now be rented at 17 per cent less than in September 2009.

The report also highlights the disparity in rental costs between Dubai and Abu Dhabi where a three-bedroom apartment may cost anywhere between Dh135,000 and Dh240,000.

Despite the decline in accommodation costs, education, healthcare and household utility costs remain at high levels making Abu Dhabi and Dubai among the most expensive places to live in the GCC.

According to the report, many private schools in the UAE have continued to raise their fees to the maximum permissible levels. School fees are at their highest in Dubai where annual fees for an International Baccalaureate school can exceed Dh90,000.

"The past 12 months have demonstrated just how quickly trends can change," Mike Hynes said.

The report assesses the impact of cost of living fluctuations on three typical real-life examples. The scenarios used include an Asian expat family living in Sharjah, a single young advertising executive living on Sheikh Zayed Road in Dubai and a Western expat family owning a home in The Meadows.