Majority feel 'priced out' of UAE realty market

More than half the people who took part in a survey said they felt priced out of the UAE property market.

A total of 51 per cent of the 619 people quizzed by online portal propertyfinder.ae said they were unable to buy a home.

The results suggest that renting remained the most viable option for those wishing to live in the UAE despite recent increases.

The online survey revealed that 43 per cent owned either a house or apartment in the UAE while 38 per cent preferred to rent.

Of those renting, almost 52 per cent said they did not have enough funds to buy a property in the UAE. Almost 20 per cent did not have enough confidence in the property market to buy a home here. And eight per cent were being forced to continue renting even though they had bought property because of delays in delivery.

"The poll has revealed some interesting and contradictory statistics from the end-user participants," said propertyfinder.ae CEO Michael Lahyani. "While 35 per cent of those polled claim to be satisfied with their accommodation, more than half – 56 per cent – will be looking to move in the next six months. This could be due to the anticipated rental increases coming into effect in January."

Only 12 per cent were dissatisfied with their current living conditions and five per cent who were very dissatisfied were planning to move.

Fifty-five per cent of tenants paid only one instalment to the landlord, while 21 per cent paid four instalments and 14 per cent paid two instalments.

Eight per cent spent more than half their monthly salary on accommodation and 40 per cent spent less than 20 per cent. Nearly 70 per cent of those renting said maintenance costs were included in their rent. A quarter all respondents spent between Dh5,000 to Dh10,000 a year on maintenance. Four per cent spent between Dh10,000 and Dh20,000 a year and two per cent of them spent more than Dh20,000.

Around four per cent said they spent more than Dh2,000 per month on their electricity and water bill and 3.5 per cent spent between Dh1,500 and Dh2,000 per month.

A hefty 44 per cent spent less than Dh500 a month on utility bills.

"There is a noticeable lack of fundamental information regarding issues affecting end users' decision making," added Lahyani. "We hope to address this with a series of surveys throughout the year."

The number

51%: of the 619 people quizzed said they are unable to buy a home due to high costs or lack of confidence in the market