Despite reports of plateauing and declining cost of property leases across the city, Dubai has been found to be one of the ten least affordable cities for rent in the world.
Based on the average cost of rent compared to average household income, gathered by various sources, Dubai appears tenth in a list ranking the cities where the highest percentage of income is spent on rent.
According to Rent Café, Dubai has an average rent-to-income ratio of 39 percent, coming in tenth just behind London on 40 percent. The median household income in Dubai is roughly US$81,000 (Dhs 297,500) per year, and just over US$31,000 (Dhs113,863) is spent on rent.
Rent Café claims the data used for the survey comes from consultancy and accounting firm PricewaterhouseCoopers, property market intelligence platform Bayut and cost of living website Numbeo, which accumulated thousands of data points relating to average income and expenditure across Dubai.
The list of the ten least affordable cities is:
- Mexico City: rent-to-income ratio = 60 percent
- Manhattan: 59 percent
- Lagos: 57 percent
- Los Angeles: 47 percent
- Paris: 46 percent
- Singapore: 44 percent
- San Francisco: 41 percent
- Mumbai: 41 percent
- London: 40 percent
- Dubai: 39 percent