DUBAI, 8 November 2007 — A survey reveals almost half of UAE residents dedicate upward of 30 percent of their monthly income to rent. About 51 percent of Qataris reported similar rates of expenditure, confirming the recent upward trend in that country’s housing market.
Over 8,500 respondents from across the region participated in an online survey conducted by market research leader YouGovSiraj in association with Bayt.com, the region’s leading job site throughout September.
When it comes to rent increases, Oman, Qatar and the UAE experienced the largest hikes, with 42 percent, 32 percent and 23 percent of tenants, respectively, shouldering increases of 20 percent or more.
Elsewhere in the GCC, only 9 percent of Bahraini residents have witnessed a 20 percent increase or more, with the majority of respondents reporting no increase at all. Some 34 percent of Saudis say they experienced no increase in their rent.
The survey shows Qatar and the UAE as the countries with the highest rent. Compared to other countries where around 60 percent pay rent less than $750 a month, in Qatar and the UAE, a majority of 66 percent and 58 percent pay rent higher than $750. And 26 percent of Emirati residents pay rents above $1,250 a month while this figure rises to 40 percent in Qatar.
“Housing expenses have a huge bearing on the job market, particularly when it comes to salary requirements and relocation decisions. This survey reveals that rents are eating up ever-larger portions of people’s pay checks, a trend that could have implications for the economy as a whole,” said Bayt.com’s CEO Rabea Ataya.
Increases in rents, Ataya continued, are forcing more and more people to share accommodation to make ends meet. Around a third of people in Qatar and the UAE said they shared accommodation with another family or unrelated individuals. This figure dropped in Kuwait, Bahrain and Oman to 27 percent, 21 percent and 17 percent, respectively.
