Affordable Labor Accommodation in Dubai is surely an increasingly challenging issue for businesses operating in the emirate. With the rental market experiencing an unprecedented boom, many companies are struggling to get housing that's both affordable and fitted making use of their needs. This inadequate affordability extends beyond just rental costs, with utility bills likewise have increased significantly due to raised electricity tariffs and government fees.
This informative article can look at some solutions for Affordable Staff Accommodation in Dubai at present, before outlining exactly what do be performed to handle this crucial issue in coming years.
Double rent charges
Among the absolute, most problems facing companies looking to produce accommodation in Dubai could be impact of double rent charges on employees who already own a home or occupy one furnished by their employer. Emiratis that are eligible to freehold ownership within the UAE constitution must pay rent of 25% of the salary. Expatriates on a long-term contract, alongside those in Free Zones, are exempt from applying this charge.
When it comes to landlords being worried, they'll typically charge one month's rent as a certain segment site fee and also require two months' rent to be paid in those days from each time a tenant is handed over until his handover date. To put it differently, if your company has chosen the likelihood of furnishing staff housing themselves and placing employees there before moving them into rented accommodation, twice the traditional amount of money may have previously been spent. This can be often not merely costly but may damage relationships between workers who resent being placed into staff accommodation in this way.
Many companies are now only providing housing to upper-level managers and specialist employees who they anticipate will leave the nation within a long time, choosing instead to help keep their capital for more urgent purposes. This not merely is sensible in terms of preserving company cash but additionally reflects the fact that many employers just cannot contend with private landlords or homeowners since it concerns salary levels.
The UAE's rental market established facts across the whole world, so anyone trying to find the property shouldn't be surprised at the high costs involved. However, many business leaders remain unacquainted with simply how much control landlords have over their tenants consequently of regulations imposed by Dubai Municipality which let them have power over sets from house design to furniture specifications.