🔥 Premium AI-powered Stock Picks from InvestingPro Now up to 50% OffCLAIM SALE

Crypto Millionaires Drive Up Rental Costs in Dubai’s Property Market

Published 04/02/2023, 07:40 PM
Updated 04/02/2023, 07:45 PM
Crypto Millionaires Drive Up Rental Costs in Dubai’s Property Market

  • Dubai’s property market surged due to crypto high-net-worth individuals.
  • 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.

The post Crypto Millionaires Drive Up Rental Costs in Dubai’s Property Market appeared first on Coin Edition.

See original on CoinEdition

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.