Affordable staff accommodation in Dubai has become an increasingly challenging issue for businesses operating in the emirate. With the rental market experiencing an unprecedented boom, many companies are struggling to find housing that's both affordable and ideal for their needs. This insufficient affordability extends beyond just rental costs, with utility bills likewise have increased significantly due to higher electricity tariffs and government fees.

This short article will appear at some solutions for affordable staff accommodation in Dubai at present, before outlining what can be achieved to deal with this crucial issue in coming years.

Double rent charges

Among the biggest problems facing companies looking to provide accommodation in Dubai may be the impact of double rent charges on employees who already own a home or occupy one furnished by their employer. Emiratis who're eligible for freehold ownership underneath the UAE constitution must pay rent of 25% of these salary. Expatriates on a long-term contract, as well as those employed in Free Zones, are exempt using this charge.

As far as landlords are involved, they'll typically charge one month's rent as something fee and also require two months' rent to be paid during the time scale from whenever a tenant is handed over until his handover date. Quite simply, if your company has chosen the option of furnishing staff housing themselves and placing employees there before moving them into rented accommodation, twice the standard amount of cash can have been spent. This isn't only costly but may damage relationships between and workers who resent being put into staff accommodation in this way.

Many companies are actually only providing housing to upper-level managers and specialist employees who they anticipate will leave the nation within two years, choosing instead to retain their capital for more urgent purposes. This not only is practical with regards to preserving company cash but in addition reflects the fact most employers simply cannot contend with private landlords or homeowners as it pertains to salary levels.

Landlords' Power

The UAE's rental market is well known throughout the world, so anyone looking for the property should not be surprised at the high costs involved. However, many business leaders remain unaware of just how much control landlords have over their tenants due to regulations imposed by Dubai Municipality which provide them with power over everything from house design to furniture specifications.

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