As property prices continue to soar in Dubai, it is important to look at the real cost of renting an apartment in the city. We all have mental budgets regarding what our monthly rent is, but as living costs increase, it becomes even more important to understand what the real costs of renting an apartment in Dubai are.
Below is a simple breakdown of the most important costs associated with renting a 1-bedroom apartment in Dubai for one year. The rent cost assumed is for an AED 85,000 apartment in Dubai Marina. The costs have been depreciated over the life of the one year contract for the apartment in order to better understand the cost breakdown:
|Chilled Water/Cooling Fee
|Total Monthly Cost
|Total Yearly Cost
It is important to realize that the real cost of renting encompasses much more than just the cost of the apartment itself. As you can see, the actual living cost for the life of a one year contract is over 25% higher than the yearly rent amount even with a simple breakdown. As other optional costs such as renter’s insurance are added to the mix, be prepared to see the real cost rise even higher.
So if you can afford to pay AED 85,000 total for housing annually, perhaps you need to look at properties that cost around AED 65,000 a year to account for other costs associated with renting an apartment.
You can try to reduce these other costs by looking for apartments that include chilled water fees, utilities and/or internet.
Simple Savings Tips
Smart Tips for Personal Finance
The Bottom Line on Taxes in the UAE