It costs high to rent apartment in Dubai

Dubai has been listed among the top 20 expensive locations in the world for high end leasing apartments sought by expatriates, according to a new report.

The emirate jumped almost 20 places to be ranked sixteenth in the 2014 listing of most high-priced areas for high end three-bedroom rental flats, ECA International, human sources consultants, said. In 2013, it had been placed 35th in the listing.

"The costs are way high to rent apartment in Dubai. The cost to rent apartment in Dubai rose more than 30 percent as demand across the emirate accelerated throughout the year," the consultancy said.

Rents for residential properties rose by 2.12 per cent in Jan 2014, with leases growing 20.32 per cent per yr, Reidin.com has said.

But last month, JLL, a world-wide real-estate consultancy, stated it anticipates the rate of rental increase in 2014 to be less than 2013 when rents climbed by almost 17 per cent. The limit does not regulate new rentals, although a lease limit is in place that restricts rent increases for present tenants to between five and 20 percent.

One acceleration citied slowing back on rental increase rate is that 20,000 to 28,000 new flats might enter the market this year only. Hong Kong was the most high-priced place in the world despite rents dropping for the second successive year, ECA stated.

Yearly accommodation reports are published by ECA for over 180 locations to assist corporations in formulating accommodation plan and repair home allowance for international workers. The rankings are derived from data from its accommodation reports. Out Of the African places surveyed, Lagos was the most high-priced rental attributes. It was ranked tenth worldwide despite rents falling by nearly six %.

"Depending on how corporations provide home or annuities to their expat workers, leasing can have a huge impact on prices. Corporations must think about this carefully when designing their expatriate home plan and packages," ECA stated.