The cost of living in Dubai continued to drop in the first-half of 2018 according to Numbeo latest report. Read more for what attracts newcomers to Dubai.
Primarily due to fall in rents, as well as also thanks to lower government public service fees, freeze and reduction in school fees, and rising dirham against major global currencies improve Dubai’s rate as one of not-so-very-expensive places to live in. These factors also improve emirate residents' purchasing power and quality of life in the city.
According to mid-year Cost of Living Index revealed by Numbeo, a statistics consultancy with the world’s largest users data database, Dubai was rated 113 in the list of most expensive global cities during the first-half of 2018 as compared to 72th place it acquired during last H1 2017. This reflects that the emirate became more affordable for the residents and tourists, experts claim.
Robert Jackson, regional director, RICS, said most significant cost of living decrease has been prevalent in accommodation, whether residents are looking to purchase or indeed rent.
"With increased accommodation being added to the market, continued downward pressure on property costs and lease rates has helped the consumer,” he noted.
The analysis discovered that the purchasing power of Dubai residents improved from 101.67 points in H1 2017 to 153.68 in the first-half of 2018. While cost of living index improved from 73.95 to 53.32 during the comparative period. Among other sub-indexes, the emirate further improved its rating in safety index, healthcare index, property price to income ratio, pollution index and climate index during the comparative period. All these factors further improved the quality of life index as well in Dubai.
Also, residents’ inflationary expectations are toning down. Thus, drop in rents and low inflation make Dubai more affordable for expats.
The only one sub-index where the emirate's rating declined during the comparative period was Traffic Commute Time. It still is rather high, But Dubai’s Road and Transport Authority (RTA) is working on improving Dubai’s distant communities accessibility through building new routes, bridges and expanding Dubai metro system.
Globally, according to Numbeo, European cities of Zurich, Basel, Bern and Geneva in Switzerland, Reykjavik in Iceland and Oslo in Norway top the list of the costliest cities in the world to live in.
And in Dubai, tenants and buyers are firmly in the driving seat, with renters likely to bargain with landlords to negotiate a lower rent, or upgrade by moving to a larger property or a new area, Haider Ali Khan, CEO of Bayut, forecasts.
"The decrease in sales prices opens up opportunities for buyers too. Whether you are renting or buying, it is a good time to make a move in the Dubai property market," he said.
In order to take advantage of the current situation and benefit from buying housing in almost any part of Dubai now, please contact us at IMEX Real Estate, and we will pick exactly what you need. Our contacts:
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