Ethos83

Since we're hunting for a place I'm curious as to how much people spend on rent as a percentage of their overall income/package.

What's the norm for out here? 15%? 20% 25%

Millhouse

For me it is, 24%.

However, I know for a fact that people in my team spend 60% (senior and junior level). i.e. senior staff in villas at 450k and sectaries in two beds at 190k.

Hello.Kitty

In 2008-2009, it was 50%... now it's about 25% Gotta love the rental crash!

Roadking

29%. Hopefully a lower % next year.

lawyeradviceldb

yes kitty is rite

kittycat1

25%

Bahtatboy

Nil, coz my company pays. But if they were to pay it on top of my salary, the rent would comprise 41% of the total. Would expect to "pay" a lower percentage next year coz rents are still falling in AD (and there'll be many new apartments being finished this year / early next year) and I'd hope to be on a bigger salary.

rowell

22% at the minute but about to make it 15%

Brains1983

same as Bahtatboy in that company pays, but if I do the math it's over 50%!

The Dean

Under 12%, but then I am (a) obscenely and undeservedly well-paid, and (b) living in a modest place.

Millhouse

... at least you are honest on (a)!

benzonar

I use about 65% of my housing allowance, the rest I pocket. Overall package it probably equates to about 20%.

Paddy09

are all these new apartments due to go on the market this year/early next year? its seems to me that activity has slowed on alot of these jobs. i am the same - ie - hoping rent will drop next year.

Ethos83

Rents will drop. Question is how much more. I expect minimum 10% drop over the next six months and 20% by end of year more likely because the market is flooded with apartments and more and more units are scheduled to be delivered. Landlords can only hold out so much. AD deliveries will reduce some of the demand for apartments and villas on the south end of Dubai, although the Sharjah to Dubai flood will probably continue.

Take the case of the Burj Lofts. A friend's been looking at one-bed units in the Lofts and when he first started looking a few weeks ago, the particular unit model he liked was asking 80K, then dropped to low 70s, and now he's just seen the same unit on a different floor where the LL will accept 65K in one cheque. His aim is to wait another two weeks and offer 60K on two cheques to see who takes the bait. If he loses out he doesn't care because he can get a one-bed in Marina Crown for 60K. Note that one beds in Burj Residences are already dropping down to 85K.

For me, the big interesting question is why apartment prices are similar across different areas of Dubai when they should differ. Case point is that listings for one-beds in Disco Gardens are still averaging the same asking prices for one-bed in JLT or the Greens, or two beds in the Greens asking same prices as two-beds in the Marina, which as we know shouldn't make sense, and suggests that there's a lot of desperate LLs holding out - but that can't happen for much longer.

Another interesting observation is that according to Dubizzle there are very few listings for apartments in Bur Dubai despite the seemingly large supply of new buildings in Golden Sand and Mankool, and the ones that are listed are no cheaper than JLT or Greens. Wonder why? Perhaps Bur Dubai operates more as a niche market among Indians than as part of the larger Dubai community. Wouldn't surprise me if that's the case, but I do know there's a steady movement of Western expats out of Bur Dubai to New Dubai and that has a couple implications in itself.

There was a brief mention in the National that Emaar is holding on to a very large supply of unsold units, which was going to affect their overall profitability reporting.

So to summarise, we are in for a very interesting time real-estate wise.

Millhouse

Rents have to fall in AD. Wait until Sun, Sky are the Marina are ready - private financed landlords (not locals) will be forced to accept anything (just like Dubai Marina).

Ok, they can slow supply - but this is hard - all of these developments will be part financed by debt. The lenders will force completion dates and delay LDs may kick in - interest will continue to accrue and so it gets to the point where it is in everybodies interest to start getting some rent in - even if that rent is lower.