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 get housing that is both affordable and ideal for their needs. This insufficient affordability extends beyond just rental costs, with utility bills also 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 what can be carried out to deal with this crucial issue in coming years.
Double rent charges
Among the biggest problems facing companies looking to supply accommodation in Dubai could 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 to freehold ownership beneath the UAE constitution must pay rent of 25% of this salary. Expatriates on a long-term contract, as well as those employed in Free Zones, are exempt from this charge.
In terms of landlords are concerned, they’ll typically charge one month’s rent as something fee and also require two months’ rent to be paid during the period from when 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 normal sum of money could have been spent. This is not only costly but may damage relationships between and workers who resent being put in 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 2 yrs, choosing instead to keep their capital for more urgent purposes. This not only makes sense when it comes to preserving company cash but additionally reflects the fact that most employers simply cannot contend with private landlords or homeowners as it pertains to salary levels.
The UAE’s rental market established facts across 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 due to regulations imposed by Dubai Municipality which let them have power over everything from house design to furniture specifications.