Crypto Millionaires Drive Up Rental Costs in Dubai’s Property Market
- The average annual rent for a single-family villa jumped 26% to $80,436.
- Last summer in Dubai, consumer prices increased by 7.1% annually before easing.
Dubai’s property market is transforming as crypto millionaires, bankers from Asia, and wealthy Russians seeking to shield assets move in. Data shows that the influx of these high-net-worth individuals has driven up rental costs, fees for private schools, groceries, transportation, and housing.
According to a recent Bloomberg finding, a couple was sent packing after being told the landlord wanted to move in with his family. However, the house was later advertised for $6,000 monthly, a 100% increase from the couple’s initial price.
Interestingly, after suing the landlord, the couple realized a staggering backlog of other tenants with similar situations.
According to real estate advisor CBRE Group Inc, the average annual rent for a single-family villa jumped 26% to $80,436 in the year through to February, while average apartment rents surged 28% to almost $27,227.
However, UAE officials claimed that price increases were more modest than elsewhere as high inflation dents spending power globally. Metin Mitchell, the founder of a C-suite executive recruitment firm working in the region for decades, said:
The nature of Dubai is changing. This is becoming a super dynamic economy again, but it’s also becoming more of a Monaco, servicing the needs of affluent and high-net-worth people.
A recent study highlighted that consumer prices increased by 7.1% annually before easing last summer in Dubai, although it was still the fastest on record. It noted that while inflation in Dubai was less rampant than in London or New York, the rate dropped to 5% in February.