Huge setback for Gulf dreams of expatriates; cost of living rising in favourite city

ABU DHABI: For numerous decades, Malayalees have moving to the Gulf region in search of work to support their families financially. However, what if the cost of living in foreign countries becomes too expensive? Expatriates in Dubai are currently facing such a situation.

According to a study published by Mercer, Dubai has emerged as the 15th costliest city in the world for international workers. According to the report, excessive rentals for homes, properties, and buildings are the main factor contributing to the growth in the cost of living. It also stated that rental rates have gone up in Dubai following the Covid era.

Rental rates in Dubai have increased by 21 per cent from 2023 to 2024. Rents for three-bedroom properties rose by 15 per cent. This is a high rate compared to other major cities. The survey points out that this will put expatriates in crisis and that they would even struggle to meet their basic needs.

Real estate consultancy Asteco says the increase in the arrival of foreigners in Dubai post-Covid has also contributed to the rise in rents. The consultancy said that the main areas of Dubai such as Jumeirah Islands, Palm Jumeirah, Dubai Sports City and Dubai Hills Estate have witnessed a 100 per cent increase in the arrival of foreigners. Various studies indicated that the rise in the prices of groceries and personal care items has also contributed to the increase in the cost of living in Dubai.