In a recently published study, UAE residents were found to be spending an estimated 40% of their monthly expenses on rent. This figure is the fourth-highest percentage spent on rent globally.
Furthermore, this study revealed that UAE residents’ monthly expenditure is approximately 17,762 AED (Php 244,500). The average monthly rent for a three-bedroom flat is around AED 7,076 (Php 97,408).
[Study] How Much Do Residents Spend on Rent in the UAE?
Money.co.uk conducted a study that looked at the average rent for a three-bedroom property in over 50 industrialized countries throughout the world and compared it to other living costs for a family of four, the Khaleej Times reported.
Due to an overstock in the market, residential rentals in the UAE have dropped significantly in recent years. Rents have nearly bottomed out and recovered in certain locations recently, particularly where supply is limited.
The Dubai market is currently highly fragmented, with average villa rents rising by 4.7%. According to recent research by Asteco, average apartment rents have declined by 10.3 percent in the past 12 months to April 2021.
Internationally, Hong Kong leads the list of the most expensive rents with residents spending 50% of their total monthly expenses on this area. This is followed by Singapore (47.08%) and Qatar (43.73%).
Rounding up the list of the h10 costliest rents in the world are Kuwait, Ireland, the US, Bahrain, Australia and New Zealand, respectively.
Of this exclusive list, Hong Kong is the only nation where the average resident pays more on their rent than their living costs combined. The average monthly cost of taking after a family of four is $3787, (Php 191,493.40) which is roughly comparable to the monthly cost of looking after a three-bed house, which is $3749 (Php 189,590) on average.
In contrast, the country with the lowest percentage paid on rent is Saudi Arabia, with an average rent equivalent to $580 (Php 29,378), while other expenses add up to as much as $2468 (Php 124,827). Therefore, rent occupies 19.07 per cent of monthly expenditures.
Countries with the lowest percentage spend on monthly rent include Argentina, Bulgaria, Croatia, Estonia, Greece, Latvia, Romania, Turkey, and Uruguay.