Dubai Rents Rocket

Due to its centered geographic location and rich reserves, Dubai has achieved a centre stage among the other economies of the world. The western market has been using Dubai as a base for their operations in Eastern markets especially China and India. Its location being midway between Far East and Europe makes it a potential target of multi-national companies to conduct their operations all over the globe. Another advantage Dubai holds is of being a player in the economy of the Arabic world. It also offers conditions like full tax exemption on capital gains which uniquely serves to its economy and economic conditions.

Office rent up by 20%

Where the country offers a rich history, all modern conventions and an economic boom it has been dealing with inflation all through. Dubai attracts a big lot of tourists and firms, both on the temporary basis which has lead to high rents all through. Another reason why the situation has become so is because of the fact that even the real estate has undergone a boom in UAE. The demand has surpassed supply in lieu of business expansions making the office rents in Dubai rise up by about 20%.
Where this has given a boom to other economies like India due to their proximity to UAE, it seems Dubai is facing the two-edged sword. This also makes it a bit costlier for real estate developers or business firms and MNC’s targeting Dubai for expansions.

Rent cap

However, the new cap on rent increases in Dubai is aimed to have an impact on curbing the inflation however in a limited way. The shortage of housing has driven prices to sky-rocketing. Dubai has already initiated an annual rent cap of 5% from January 1. The decree states that pro-agreement a landlord won’t be able to increase the rents for the next two years to come. With a statistics body that UAE plans to come up with so as to keep a check on inflation, it seems rents will soon see a level.