Rents in the UAE have moderated since the start of the pandemic but monthly payments still remain high, a new study shows. In a report by UK price comparison website money.co.uk, UAE residents ranked fourth globally for the percentage of their monthly expenditure spent on rent.
The rankings were topped by Hong Kong, where residents spent a whopping 50.25 per cent of their monthly expenditure on rents. It was followed by Singapore and Qatar, where renting a three-bed apartment amounted to 47.08 and 43.73 per cent, respectively, of the monthly expenses of a family of four.
The research looked at the average cost of rent for a three-bed property in more than 50 countries around the world and compared it to the cost of living for a family of four, including food shopping, utilities, transportation, leisure and more.
According to the report’s data, a family of four in the UAE spends an average of 39.85 per cent of their monthly expenses on rent.
Kuwait, where residents spend an average of 38.2 per cent of their monthly cost of living on rent, rounded up the Top 5 in the report.
Housing rents in a free market are primarily determined by two factors: income levels and the demand-supply equilibrium. The UAE belongs to countries in the high-income group and features in the world’s top 15 countries in terms of residents’ purchasing power.
Other countries where residents spend at least 33 per cent of their monthly expenses on rent included Ireland (37.22 per cent), the US (37.03 per cent), Bahrain (35.14 per cent), Australia (33.3 per cent), New Zealand (33.12 per cent), and Canada (33.08 per cent).
TOP 5 DESTINATIONS WHERE RESIDENTS SPEND THE HIGHEST ON MONTHLY RENT
| Average Monthly Rent (3-Bedroom) | Estimated monthly expenses (family of 4) | Monthly expenses including rent | Rent as a percentage of total monthly spend | |
| 1. Hong Kong | $3,765 | $3,730 | $7,495 | 50.25% |
| 2. Singapore | $3,071 | $3,451 | $6,522 | 47.08% |
| 3. Qatar | $2,324 | $2,990 | $5,314 | 43.73% |
| 4. UAE | $1,902 | $2,870 | $4,772 | 39.86% |
| 5. Kuwait | $1,582 | $2,559 | $4,141 | 38.2% |
TOP 5 DESTINATIONS WHERE RESIDENTS SPEND THE LOWEST ON MONTHLY RENT
| Average Monthly Rent (3-Bedroom) | Estimated monthly expenses (family of 4) | Monthly expenses including rent | Rent as a percentage of total monthly spend | |
| 50. Saudi Arabia | $578 | $2,452 | $3,030 | 19.07% |
| 49. Greece | $615 | $2,501 | $3,116 | 19.73% |
| 48. Turkey | $339 | $1,348 | $1,687 | 20.11% |
| 47. Argentina | $409 | $1,582 | $1,991 | 20.53% |
| 46. Croatia | $647 | $2,495 | $3,142 | 20.6% |
At #50, GCC peer Saudi Arabia was the most affordable country on the list. Residents in the Kingdom of Saudi Arabia spend, on an average, 19.07 per cent of their monthly expenditure on rentals.
Following Saudi Arabia on the list of destinations where residents spend the least percentage of their monthly expenses on rent were: Greece (19.73 per cent), Turkey (20.11 per cent), Argentina (20.53 per cent), and Croatia (20.6 per cent).
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