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Partly because of demand, price goes up.  But more because the landlords are greedy, like most business people in the middle east they too want a fast buck overnight.  And there is added hype regarding the real estate as if the demand is too high.  Of course there are those who can afford to pay any rent, or they are being real suckers.  You need more reasons?

This is still cheap compared to other places in the world

For example, I pay close to US$1,500 per month for a small flat in Dubai.  Same flat or even a larger apartment would cost in USA major cities, during the best of economic times, for US$500.  Wonder how you say Dubai rent is cheaper than other places in the world.  Can you provide any equivalent city comparison?

Dubai rent is still 3/4 that of Singapore and 2/3 of London just for your info.  you should check out the cost of living index below - there is a rent index comparing all major cities in the world.

numbeo.com/cost-of-living/rankings_by_country.jsp

mjrv wrote:

Wonder how you say Dubai rent is cheaper than other places in the world.  Can you provide any equivalent city comparison?

As Frazzla said, I was thinking about London ! Paris is very expensive too.

I've just accepted a job in Dubai starting in September... do you think it makes more sense to buy or rent in Dubai if you wanted to preserve capital without taking on too much risk?  Ties into the thread title as just wondering if rents moving up, down or flat...  Cheers guys!

Fraz

80% people in Dubai are expats, of whom 50% are middle class or lower middle class.  They do not need Singapore or London style life, although the quality and cleanliness are a priority.  It is not right to have rents on par with cities like London, because people cannot afford.  A small percentage with high salaries and perks may be able to afford the rent, but the rest of the rent increase is purely artificial hype and hike.  Many USA cities are providing equally, if not better, quality of life to the public, and their rents are far lower than Dubai.