Renting Apartments and Villas
Most expatriates who come to work in Dubai initially rent an apartment or villa.
Costs
Rents have rocketed in recent years as demand has outstripped supply. In November 2005 the government capped rent increases at 15% (amended to 7% in 2007 and 5% in 2008) but this came a little too late for most. The next few years look a lot more promising as many of Dubai’s new residential developments are completed. Nevertheless, expect to pay London/New York rates for anywhere decent.
Many real estate analysts predict that rents will fall as Dubai's mega projects are completed over the next few years (Jumeirah Beach Residence etc.) 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.
