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Just finished week one in Dubai and I knew it was going to be expensive, but being here has just confirmed this even more.

Yesterday we viewed a dust ridden one bedroom flat in a complex which although ok would not have looked to far out of place in Spain catering to club 18-30 holidays (great if you like parties, but not for us) all other attempts to find somewhere have failed as well.

The day before I spoke with someone who had an advert in Spinney’s for a villa share, "Too late" she told me "I am being evicted as the landlord has just raised the rent to a level it's impossible for me to afford, so I have to move out myself now"…..oh dear I replied, best of luck to you! - her last words were "Best of luck to you as well, it's a living hell to rent here".

Now we are in a fairly resilient position and viewing this whole move with an open mind. Myself and my partner and trying to maintain a state of mind that consists of 'if it don't work out, then back we go' - so no tears will be shed, just a shrug of the shoulders and an 'oh well, we tried'.

We own a property in London so we can always move back home. This property is in a nice area, two very large bathrooms and is a really nice place – we are hoping to rent this out if we find somewhere out here, for about the same price as a little studio / two bed flat share in Dubai.

This whole situation has got me thinking. We are two professionals of if not good then most definitely higher average income. In the UK I have a salary which is in the upper brackets, albeit not quite CEO, but able to live a comfortable life, combined with my patners we can do alright and afford to eat out and have a couple of Holidays each year.

The way it is looking out here we may well be priced out of the rental market, let alone the wine’ing and dine’ing.

From scanning the wanted adverts I have noted numerous other Europeans 'desperately seeking property' with budgets way below our own – “gee, best of luck to you at that price pal!”

Now in consideration of the prospect of rents going up again at a absolute minimum of 15% (if we are all lucky) - can middle class professionals really afford to live here and sustain rental payments and a modest quality of life, and if they can will they really have much a better situation then back home (apart from the extended sunshine).

Now I would have thought (being far from an expert) if Dubai keeps going in this direction it will end up being a place of the super rich and the super poor?

In the long run you cannot sustain an economy in this manner; well at the least you can't sustain a decent society, surely?

As for the tax free good’s? Cars are a good deal, but other goods are pretty much the same as they are in the UK market including the government tax.

Anyways, sorry to whine folks end of a busy ole weekend.

Hey cigarettes are cheaper though - 'smooooking'

Welcome to Dubai and stick with it. The first few months suck, but get OK after that.

^ian^ wrote:Welcome to Dubai and stick with it. The first few months suck, but get OK after that.

Thanks Ian - nice of you to say and a 'get better' lifts the spirits.

jabbajabba,

Welcome to Dubai. I have to say that your first impressions are correct about Dubai. It, I believe, does not get any better than what you have seen. Prices are continually increasing, traffic is a nightmare, the divide between cultures is there for all to see (we are treated like 3rd class citizens), ruthless businesses to name but a few.

But hey, if you can knuckle down and enjoy shopping malls every weekend, then go for it. The constant sunshine does get you down after a while, believe you me!

Good luck.

It's OK. You'll get used to it. Welcome to Dubai and to DF as well!

The rent spiral was explained to me when I got my job as being down to a stop in building around the turn of the millennium which - given it takes 4-5 years to plan and build these complexes - meant that there was a lack of housing supply and demand soared during this period. They guy who recruited me said there is so much property coming on in the next 2 years that rents should go down in the medium term, for appartments particularly.

Is that a true story or were they just pre-empting me on asking for a bigger housing allowance in negotiations!?

Taking a step back in the wider economic picture at the moment, property to buy is no more than the UK yet rents are much bigger. Ergo the few homeowners are making a killing and there is plenty of scope to move down the way when more supply means more competition.

scot1870 wrote:Taking a step back in the wider economic picture at the moment, property to buy is no more than the UK yet rents are much bigger. Ergo the few homeowners are making a killing and there is plenty of scope to move down the way when more supply means more competition.

This is the oft touted story, so many apartments coming on line, supply catching up to demand, but underneath it all, there's another issue.

What would you say if I said that the Marina is half empty?

That the new apartments on Sheikh Zayed Road between defence roundabout and metropolitan are finding it difficult to let?

The there's many many vacant villas in Al Barsha?

The reality is rents at the moment are artifically high. The supply and demand are a lot closer together than people think, and that if relief comes at all, it will come with a bang.

What's keeping these apartments vacant is not the lack of willing renters, but the high price the real estate agents have told the owners they can let them for.

The problem is the real estate rental sector. It is unregulated, run by cowboys, and both the owners and the renters are feeding a system that for some reason is allowed to exist in its current form.

A years rent upfront?
5% comission?
The worst agents... ever?

This needs to be cleaned up before housing can come back to being normal.

Personally, I think there's a great opportunity for someone willing to put the effort in and changes the rules.

jabbajabba wrote:
We own a property in London so we can always move back home. This property is in a nice area, two very large bathrooms and is a really nice place – we are hoping to rent this out if we find somewhere out here, for about the same price as a little studio / two bed flat share in Dubai.

Im curious to know as to what made you leave london for dubai ?



Welcome to dubai and I hope you have better luck this week in your hunt for property

welcome to dubai! ..well thats how it is huh??

Welcome to dubai and the rental spiral

I have to aagree with Ian, even in Mirdiff around where I live there are many new villas that have been empty for at least six months, purely because of the unreasonable rents that the landlords want to for them.

There are many 'cheaper' projects being finished, aiming at people who have a more modest income.

Obviously their is a lot of opinions on the level of rents, I would like to add my 2pence worth

In Abu Dhabi 1992 I had a friend renting 4bed duplex apt., one road back from the Corniche he was paying Dhs.144k, I went to Abu Dhabi in 1997 rented the same apt for Dhs.55k, that was all down to supply and demand, I believe the same will happen here in Dubai by March April next year.

[quote="KeithL"][Im curious to know as to what made you leave london for dubai ?
/quote]

Hi Keith - good question Keith, i would have asked the same after reading my post. The main drive was my partner has been offered a really good job, which will do her career the world of good. She also has loved it here since coming on Holiday a few years ago.

After talking to my work, i was up for it as well.

I have worked in Kuwait and Egypt over the past few years and really like the middle east. So here we are.

Also London as much as I love the place is cold and wet this time of the year. It is also getting more nutty. Don't get me wrong there are mixed up / bad people everywhere in the world, but petty crimes are getting more violent and disturbing as each day goes by.

+ the anything you do is taxed

jabbajabba wrote:

KeithL wrote:[Im curious to know as to what made you leave london for dubai ?
/quote]

Hi Keith - good question Keith, i would have asked the same after reading my post. The main drive was my partner has been offered a really good job, which will do her career the world of good. She also has loved it here since coming on Holiday a few years ago.

After talking to my work, i was up for it as well.

I have worked in Kuwait and Egypt over the past few years and really like the middle east. So here we are.

Also London as much as I love the place is cold and wet this time of the year. It is also getting more nutty. Don't get me wrong there are mixed up / bad people everywhere in the world, but petty crimes are getting more violent and disturbing as each day goes by.

+ the anything you do is taxed

If you're not set on living in a villa, then I'd seriously advise you to look at buying property and using your rent money in paying for the mortgage.

A 1Bkh apartment in a place like International city will cost you around 380K and with 70% finance, you would be looking at paying between 2500 to 3K per month.

Even if you decide that dubai is not the place for you, you can lease the property out and it'll pay for itself

Thats a good point and we will look at the after being here a little while longer.

Had a better day today - found some cheaper apartments and villas out a Mirdiff (any one know much on area, any good?).

I have also spoke to few agents and landlords - seems the one cheque request is a hopeful punt in the advert itself. I have had a few today say they will push to four cheques.

Anyone asking silly money has been told where to get off! Hey we got make the tide start turning folks, we must be the ones with the power, well at least i hope so (keeps me amused anyway!)