Dubai Forums Dubai Expat Forums Dubai Expat Help Forum

As we all know, accommodation is our main and biggest expense here in Dubai. Sometimes I'm just curious about how people can afford to rent such expensive villas/apartments, how much the salary, what do they do, shared or exclusive, etc etc.

Here I'm not asking about the Dirhams, but just a percentage how much you are spending for your accommodation rent out of your monthly salary. Divide by 12 for annual rent fee + other fees like commission and deposit if any. For ones who buy, probably you may consider your monthly installments. Exclusive means you rent your accommodation by yourself or with your family. Shared means you share your accommodation with others (consider only your share/part, not the whole rent fee).

I (and probably others) will appreciate your participations. This may help also newcomers about Dubai in general.

Mostly for the people i know are paying 25% both for exclusive & shared.


For the new expats coming to dubai (uae) and would be holding a key position in the company, it would be easier on your part if employer pays directly to the landlord for your housing allowance. What i mean is that, tenancy agreement should be between your employer & landlord. In this way, you won't worry about paying high rents and/or rent increases.

But i think only few expats have this kind of package.

asc_26 wrote:it would be easier on your part if employer pays directly to the landlord for your housing allowance. What i mean is that, tenancy agreement should be between your employer & landlord. In this way, you won't worry about paying high rents and/or rent increases.

Good idea, will keep in mind when someday I'd move to other employer.

Seems most of you guys are well off. For obvious reasons.

xty wrote:

asc_26 wrote:it would be easier on your part if employer pays directly to the landlord for your housing allowance. What i mean is that, tenancy agreement should be between your employer & landlord. In this way, you won't worry about paying high rents and/or rent increases.

Good idea, will keep in mind when someday I'd move to other employer.

I don't agreee. This helps to raise rent prices. Who will negotiate for you at the company: nobody. The PRO will sign and then your "salary" is made up of a rent amount plus the rest. You should get a reasonable allowance for rent and then negotiate yourself with the landlord for a lower rent and keep the rest. You could be stuck with a 1 bedroom at 100K when it is worth 60K. What you should negotiate with the employer is an advance or loan for you to pay the rent in advance (if you do not have that much cash with you)...

For example, my rent "allowance" is about 4 times my current rent but I get to keep the 3 dirhams.

Concord wrote:

xty wrote:

asc_26 wrote:it would be easier on your part if employer pays directly to the landlord for your housing allowance. What i mean is that, tenancy agreement should be between your employer & landlord. In this way, you won't worry about paying high rents and/or rent increases.

Good idea, will keep in mind when someday I'd move to other employer.

I don't agreee. This helps to raise rent prices. Who will negotiate for you at the company: nobody. The PRO will sign and then your "salary" is made up of a rent amount plus the rest. You should get a reasonable allowance for rent and then negotiate yourself with the landlord for a lower rent and keep the rest. You could be stuck with a 1 bedroom at 100K when it is worth 60K. What you should negotiate with the employer is an advance or loan for you to pay the rent in advance (if you do not have that much cash with you)...

For example, my rent "allowance" is about 4 times my current rent but I get to keep the 3 dirhams.

Some employers are very generous, they will ask you to choose the place where you want to live, and then they will negotiate the rent until the duration of your contract. If your contract is 2 years, tenancy agreement is also two years. In this way, you’re secured for 2 years without rent increase. How about if the employer signed 5 years contract with the landlord? You can save more.

Package negotiation should be plus rent allowances at any cost. Whatever will be rent, employer pays for it. Just make sure the place isn't crappy.

asc_26 wrote:

Concord wrote:

xty wrote:

asc_26 wrote:it would be easier on your part if employer pays directly to the landlord for your housing allowance. What i mean is that, tenancy agreement should be between your employer & landlord. In this way, you won't worry about paying high rents and/or rent increases.

Good idea, will keep in mind when someday I'd move to other employer.

I don't agreee. This helps to raise rent prices. Who will negotiate for you at the company: nobody. The PRO will sign and then your "salary" is made up of a rent amount plus the rest. You should get a reasonable allowance for rent and then negotiate yourself with the landlord for a lower rent and keep the rest. You could be stuck with a 1 bedroom at 100K when it is worth 60K. What you should negotiate with the employer is an advance or loan for you to pay the rent in advance (if you do not have that much cash with you)...

For example, my rent "allowance" is about 4 times my current rent but I get to keep the 3 dirhams.

Some employers are very generous, they will ask you to choose the place where you want to live, and then they will negotiate the rent until the duration of your contract. If your contract is 2 years, tenancy agreement is also two years. In this way, you’re secured for 2 years without rent increase. How about if the employer signed 5 years contract with the landlord? You can save more.

Package negotiation should be plus rent allowances at any cost. Whatever will be rent, employer pays for it. Just make sure the place isn't crappy.

My point is that the arrangment of "whatever will be rent" drives rents up for everyone else.

Concord wrote:

asc_26 wrote:

Concord wrote:

xty wrote:

asc_26 wrote:it would be easier on your part if employer pays directly to the landlord for your housing allowance. What i mean is that, tenancy agreement should be between your employer & landlord. In this way, you won't worry about paying high rents and/or rent increases.

Good idea, will keep in mind when someday I'd move to other employer.

I don't agreee. This helps to raise rent prices. Who will negotiate for you at the company: nobody. The PRO will sign and then your "salary" is made up of a rent amount plus the rest. You should get a reasonable allowance for rent and then negotiate yourself with the landlord for a lower rent and keep the rest. You could be stuck with a 1 bedroom at 100K when it is worth 60K. What you should negotiate with the employer is an advance or loan for you to pay the rent in advance (if you do not have that much cash with you)...

For example, my rent "allowance" is about 4 times my current rent but I get to keep the 3 dirhams.

Some employers are very generous, they will ask you to choose the place where you want to live, and then they will negotiate the rent until the duration of your contract. If your contract is 2 years, tenancy agreement is also two years. In this way, you’re secured for 2 years without rent increase. How about if the employer signed 5 years contract with the landlord? You can save more.

Package negotiation should be plus rent allowances at any cost. Whatever will be rent, employer pays for it. Just make sure the place isn't crappy.

My point is that the arrangment of "whatever will be rent" drives rents up for everyone else.

Disagree. Whatever will be the rent, fixed @ X of years of contract is security for any rent increases.

E.g:
Annual rent is 100K/annum for 3 years or so (depending on how long is your employment contract). You will be expecting rent increases after 3 years instead of the usual yearly rent increase. If after 3 years (e.g 2010), municipality issued 0% rent cap, again you're secured for another long-term rent contract at 0% rent increase.

My point: It is different if company pays for your rent (they can issue one cheque for X number of tenancy period, which you are suggesting as loan) and negotiate better rents. Also, landlords prefer to deal directly with employers for payment security.

I've read somewhere in Europe, the minimum lease agreement is 9 years. If we can do this here, then everybody is happy though not a good news for investors and landlords.

asc_26 wrote: I've read somewhere in Europe, the minimum lease agreement is 9 years.

You "read somewhere" or "somewhere in Europe". Can't be so in any case!

asc_26 wrote:Disagree. Whatever will be the rent, fixed @ X of years of contract is security for any rent increases.

Good theory... doesn't work in practice because of your point below.

E.g:
Annual rent is 100K/annum for 3 years or so (depending on how long is your employment contract). You will be expecting rent increases after 3 years instead of the usual yearly rent increase. If after 3 years (e.g 2010), municipality issued 0% rent cap, again you're secured for another long-term rent contract at 0% rent increase.

Nobody wants to be in that position. I think you'll find most long term tenancy agreements will have protection for landlords in this instance we well.

My point: It is different if company pays for your rent (they can issue one cheque for X number of tenancy period, which you are suggesting as loan) and negotiate better rents. Also, landlords prefer to deal directly with employers for payment security.

Yes but the problem is if your rental allowance is 10,000 dirhams per month then your company will get you something for 10,000 dirhams per month, and not even care about trying to haggle it down to 9000 dirhams. Negotiation doesn't happen.

Landlords like this because they know companies don't both negotiating.

This artifically inflates rent. Concord is correct on this point.

I've read somewhere in Europe, the minimum lease agreement is 9 years. If we can do this here, then everybody is happy though not a good news for investors and landlords.

9 years? Where?

In most of the rest of the world, rental can be on 6/12 months contracts, paid monthly, with the landlord held to their obligations a lot stricter than they are here.

Concord wrote:

asc_26 wrote: I've read somewhere in Europe, the minimum lease agreement is 9 years.

You "read somewhere" or "somewhere in Europe". Can't be so in any case!

I hate you concord.

I've read from the daily paper (business or property column) that somewhere in Europe (forgot which country)...hmm couldn't remember anymore. I'll ask the writer, don't worry. Give me at least day to do it.

But i think you know about it already, so i don't need to do a research again. Just add some inputs.

asc_26 wrote:

Concord wrote:

asc_26 wrote: I've read somewhere in Europe, the minimum lease agreement is 9 years.

You "read somewhere" or "somewhere in Europe". Can't be so in any case!

I hate you concord.

I've read from the daily paper (business or property column) that somewhere in Europe (forgot which country)...hmm couldn't remember anymore. I'll ask the writer, don't worry. Give me at least day to do it.

Don't bother looking it ain't true on a residential lease!

Concord wrote:

asc_26 wrote:

Concord wrote:

asc_26 wrote: I've read somewhere in Europe, the minimum lease agreement is 9 years.

You "read somewhere" or "somewhere in Europe". Can't be so in any case!

I hate you concord.

I've read from the daily paper (business or property column) that somewhere in Europe (forgot which country)...hmm couldn't remember anymore. I'll ask the writer, don't worry. Give me at least day to do it.

Don't bother looking it ain't true on a residential lease!

Geez, I am trying to cheer up the new comers of UAE. Concord & Ian, messed it up again.

It is possible for residential lease. If only UAE gov't put their hands on this, why not? My employer signed 5 years contract with the landlord, if i decide not to renew my employment contract, my successor will occupy the unit.

asc_26 wrote:

Concord wrote:

asc_26 wrote:

Concord wrote:

asc_26 wrote: I've read somewhere in Europe, the minimum lease agreement is 9 years.

You "read somewhere" or "somewhere in Europe". Can't be so in any case!

I hate you concord.

I've read from the daily paper (business or property column) that somewhere in Europe (forgot which country)...hmm couldn't remember anymore. I'll ask the writer, don't worry. Give me at least day to do it.

Don't bother looking it ain't true on a residential lease!

Geez, I am trying to cheer up the new comers of UAE. Concord & Ian, messed it up again.

It is possible for residential lease. If only UAE gov't put their hands on this, why not? My employer signed 5 years contract with the landlord, if i decide not to renew my employment contract, my successor will occupy the unit.

You are employed

Concord wrote:

asc_26 wrote:

Concord wrote:

asc_26 wrote:

Concord wrote:

asc_26 wrote: I've read somewhere in Europe, the minimum lease agreement is 9 years.

You "read somewhere" or "somewhere in Europe". Can't be so in any case!

I hate you concord.

I've read from the daily paper (business or property column) that somewhere in Europe (forgot which country)...hmm couldn't remember anymore. I'll ask the writer, don't worry. Give me at least day to do it.

Don't bother looking it ain't true on a residential lease!

Geez, I am trying to cheer up the new comers of UAE. Concord & Ian, messed it up again.

It is possible for residential lease. If only UAE gov't put their hands on this, why not? My employer signed 5 years contract with the landlord, if i decide not to renew my employment contract, my successor will occupy the unit.

You are employed

Unfortunately, yes. If you can spare your dawg house, i might reconsider.

Guys, here's the link. Pro-tenant law in one of the europeans country. 3-6-9 lease.

http://globalpropertyguide.com/country. ... t=landlord

http://www.belgium.or.kr/page56.html

asc_26 wrote:Guys, here's the link. Pro-tenant law in one of the europeans country. 3-6-9 lease.

http://globalpropertyguide.com/country. ... t=landlord

http://www.belgium.or.kr/page56.html

I don't think anyone doubts up to 9 year leases are available, I imagine this can be contractually anywhere, but for residential, they are anything but the norm.

Multiple year leases are generally for industrial properties in the western world, the more common practice by far is 6/12 month leasing with monthly payment.

Back to topic.
More participations on the poll would be really appreciated.