People contemplating moving to Dubai are baffled by the contrasting reports on the economic conditions being reported there. Falling realty rates have become the key factor behind Dubai’s sixteen place drop in the Worldwide Cost of Living Survey over the previous year.

1. Moving to Dubai: Is it an affordable decision anymore?
People contemplating moving to Dubai are baffled by the contrasting reports on
the economic conditions being reported there. Everyday there are reports that
the cost of living is spiraling out of control. Transport costs are increasing,
education is becoming expensive, etc. In-fact, tuition fees in some educational
institutions are so high that western expatriates are reporting that it has become
cheaper to educate children in some of the best private schools back home.
Textbooks too haven’t been spared with them costing significantly higher than
what they did some years ago. At the same time, certain commodities and staple
foods such as rice, sugar, eggs, flour, oil, etc. have held firm on their prices in the
past twenty-four months.
A recent survey by the Economist Intelligence Unit might hold the key for those
expats who are looking at a move to the Emirate. It has measured the average
prices of 160 products and services in 130 cities across the globe that sees strong
expatriate traffic. The Worldwide Cost of Living Survey conducted by them has
seen Dubai’s ranking dropping by sixteen places over the previous year. This
mirrors the sentiment of many a veteran resident of the Emirate that declare it to
be a world class city with the most affordable standard of living. Others are not
fully convinced. Homemakers that are in charge of the family finances have
reported significantly higher outgoings in the grocery, essential commodities and
utilities departments.
Well, the report is true in a certain aspect, for it includes a key factor that has a
heavy influence on the rankings – the rental rates in Dubai. At no other point in
recent history have Dubai properties for rent been cheaper. The economic
downturn of 2009 has seen realty rates falling to unheard of levels. This then is
the secret behind the strong performance of Dubai on the rankings.
During the property boom a few years ago, it had become a ritual of sorts for
developers to announce the construction of yet another property. So, is the cost
of living really that high or are all these reports merely the incomplete truth?
Well, that’s for you to decide…