Labor Accomodation 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 is both affordable and suited to their needs. This insufficient affordability extends beyond just rental costs, with utility bills also provide increased significantly due to raised electricity tariffs and government fees.
This information will appear at some possibilities for affordable staff accommodation in Dubai at present, before outlining what can be carried out to address this crucial issue in coming years.
Double rent charges
One of the biggest problems facing companies looking to offer 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 are entitled to freehold ownership underneath the UAE constitution must pay rent of 25% of their salary. Expatriates on a long-term contract, in addition to those employed in Free Zones, are exempt from using this charge.
So far as landlords are involved, they will typically charge one month's rent as a site fee and also require two months' rent to be paid during the time scale from when a tenant is handed over until his handover date. Quite simply, if a company has chosen the option of furnishing staff housing themselves and placing employees there before moving them into rented accommodation, twice the normal sum of money may 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 now only providing housing to upper-level managers and specialist employees who they anticipate will leave the united states within couple of years, choosing instead to hold on to their capital for more urgent purposes. This not merely makes sense when it comes to preserving company cash but in addition reflects the fact most employers simply cannot compete with private landlords or homeowners in regards to salary levels.
The UAE's rental market established facts around the world, so anyone looking for the property shouldn't be surprised at the high costs involved. However, many business leaders remain unaware of how much control landlords have over their tenants because of regulations imposed by Dubai Municipality which let them have power over sets from house design to furniture specifications.