Renting Apartments and Villas
Most expatriates who come to work in Dubai initially rent an apartment or villa.
Costs
Rents rocketed in recent years as demand has outstripped supply. In November 2005 the government began to cap rent increases to ensure stability in the property market.
The current economic crisis has resulted in downward pressure on rental rates. Nevertheless, expect to pay London/New York rates for anywhere decent.
Many real estate analysts predict that rents will fall even further as Dubai's mega projects are completed over the next few years and flood the market with thousands of new apartments.
The rents quoted in advertisements are annual. Most rents are also paid annually in advance, although some landlords will allow payment in two or three instalments (by post-dated cheque).
Other costs include:
- Water and electricity deposit - AED 1,000 for apartments, AED 2,000 for villas
- Real estate agent commission – typically a one-time payment of 5% of annual rent
- Maintenance charge – varies but could be included in the rent
- Landlord deposit – refundable
- Municipality tax – 5% of annual rent
Complaints about illegal rent increases and other disputes can be made to the Dubai Rent Committee. They are situated in the Dubai Municipality building on Baniyas Road, Deira.