13 March 2014
Dubai has some of world’s most expensive high-end flats
Dubai has been listed among the top 20 most expensive locations in the world for high-end rental apartments sought by expatriates, according to a new report.
The emirate jumped 19 places to be ranked 16th in the 2014 list of most expensive locations for high-end three-bedroom rental apartments, ECA International, human resources consultants, said. In 2013, it was placed 35th on the list.
“Dubai is as the most expensive location for rental property in the Middle East. The cost of renting a three-bed property there increased more than 30 per cent as demand across Dubai continued to accelerate this year,” the consultancy said.
Rents for residential properties rose by 2.12 per cent month-on-month in January 2014, with rentals increasing 20.32 per cent year-on-year, Reidin.com has said.
But last month, JLL, a global real estate consultancy, said it expects the rate of rental increase this year to be lower than 2013 when rents rose by 17 per cent.
Although a rent cap is in place that limits rent increases for existing tenants to between five and 20 per cent, the cap does not govern new leases.
One reason citied slowing down on rental growth pace is that 20,000 to 28,000 new units may enter the market this year alone.
Hong Kong was the most expensive location in the world despite rents falling for the second consecutive year, ECA said. It was followed by Moscow, Caracas, New York and London.
ECA publishes annual accommodation reports for more than 180 locations to assist companies in formulating accommodation policy and fix housing allowance for international employees. The rankings are based on data from its accommodation reports.
Among the African locations surveyed, Lagos was the most expensive rental properties. It was ranked 10th globally despite rents falling by nearly six per cent.
“Housing provision for expatriate staff is an expensive, important and often emotive element of the overall remuneration package,” said Rebecca Darling, Head of Production, ECA International.
“Depending on how companies provide housing or allowances to their expatriates, major currency movements can have a big impact on costs. Companies need to consider this carefully when designing their expatriate housing policy and packages,” she added.