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Dubai becomes more affordable compared to other cities

Dubai's total annual cost per employee of living and working accommodation stood at $53,913, a decrease of seven per cent since December.

Dubai ranks eighth in a list of the world's most expensive cities for companies to accommodate staff. The list from Savills Live-Work Index, which compares total housing and office rent costs on a per capita basis around the world, showed that costs in Dubai were less than half that in New York which was judged the most expensive. Office-based businesses operating in major world cities will spend around one-third of their total operating costs on accommodation through a combination of commercial rents, paid directly to landlords, and demands on salaries created by the cost of employees' living accommodation. Fluctuations in these costs will, therefore, have a significant bearing on how competitive a city is to employers.

$53,913 in Dubai is less than half the amount of New York at $114,009. Hong Kong is just ahead of London's $100,141 at $100,984. However, Dubai remains one of the top 10 most expensive cities to live and work in despite the fall in oil prices.

Dubai, Lagos and Moscow have all seen rents fall in both office and residential accommodation owing to falling occupier demand in economies closely affected by oil price. Real estate markets in Dubai and Moscow are denominated in US dollars or related currencies, so have not been affected by currency movements against the dollar. By contrast, Lagos now looks 27 per cent more affordable for international occupiers.

New York continues to be the world's most expensive city in which to accommodate staff. This is despite signs of slowing office rents and elevated use of incentives and concessions to both office and residential tenants in New York. For the last 30 months, London has held top spot, reflecting the high demand for space from a variety of occupiers. However, the impact of currency fluctuations after Brexit has made London more competitive, reducing occupation costs in dollar terms by 11 per cent since the beginning of 2016.

Real estate growth has shifted back from east to west. From 2005 to 2011 new world cities of ‘BRIC’ (Brazil, Russia, India and China) countries: Shanghai, Mumbai and Moscow as well as Hong Kong and Singapore significantly outperformed London, New York, Paris, Tokyo and Sydney. But in the years to 2015 this trend has reversed – as economic growth and wealth creation has slowed in the new world, economic revival has driven real estate recovery in Europe and, most especially, in the USA. 

Projects from this area

Marquise Square, Dubai

Spectacular views of the world’stallest tower. Just seconds from the Dubai Water Canal, anticipated to become the next Dubai Marina.

A striking 29-floor structure created by a highly regarded local Emirati family developer. Inside, a luxurious range of studio, onebedroom, two-bedroom and threebedroom apartments, finished to some of the finest standards in the city.

From just AED 895,000 with only a 15% deposit, this opportunity will also offer a solution to the huge undersupply of studio apartments at the very heart of Dubai.

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Al Sana

This is a five-story serviced apartment complex, located beside RAK Hospital, in Ras al Khaimah’s premier residential district.  The RAK Free Zone is only minutes away on traffic-free roads. 

Beaches, marinas, world class golf courses, shopping centers, hotels, and all the amenities of fast-growing Ras al Khaimah are easily accessible. Downtown Dubai is an hour’s drive on a superb highway.

Mountain View’s residential facilities are ideally located for any RAK-based businessman or professional seeking a luxurious, secure, centrally located residence. Build quality is of the highest international standard, with a US-based international project management firm supervising construction.

The ground floor of the Mountain View complex will have reception, offices, gym and other services for residents and guests. Each of the 5 floors above will hold a total of six serviced apartments. The 800 sq ft one-bedroom and 1200 sg ft two-bedroom serviced apartments are available with full ownership rights at special pre launch prices

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