Correlation Between The Rising Rent Prices And Stagnant Salaries Case Study Of Dubai

Correlation Between The Rising Rent Prices And Stagnant Salaries Case Study Of Dubai

Problem description

In recent times rent prices within Dubai have been skyrocketing. This also makes its inhabitants dig deeper and deeper into their salaries which have remained stagnant. The strains within the economy have forced people out of home ownerships to the rental market. Then investors in the housing sector scooped up house properties, which factored in family homes and also converted them to rental units from home ownerships (ArabianMoney 2013). This led to a massive increase in rent while salaries kept constant. Tenants are paying almost a third of their salaries for places to sleep. Some even have to congest themselves in small rooms because of this.

Key stakeholders

The main stakeholder in this case is the government who are tasking with making legislations. We also have apartment owners and real estate companies who majorly inflate rent prices without regard to the plight of tenants. The other stakeholder is the employer fraternity which also includes the government who employs the public and do not advance their remunerations according to changes in the cost of living (ArabianMoney 2013). The last stakeholders are the tenants who are suffering from stagnant salaries and also the high rent prices yet not being consulted. All the above stakeholders should hence team up and agree on a binding way forward which is favorable for all parties.

Impact of the issue on the client

There is definitely no better place than home for everyone. As rent prices within the once affordable environment skyrocket, seasoned apartment tenants will definitely have so much to loose (Dubai n.d.). The people who have always lived near you for a long time are much more than neighbors the stagnant salaries together with high rent definitely shall force them out. Many houses within Dubai were renovated and rent prices rose while the pre-existing houses had their rents increased due to the high demand for housing because of the huge employee influx.

In the near future the tenants who are the clients in this case won’t be able to stay in their preferred places due to the yearly dynamic rent prices. Some tenants shall be forced to small apartments and below average apartments while some shall be even forced to share small apartments between themselves so they could afford the rent prices (Zainab 2013).

Much of their income shall be spent on rent making them lack enough cash to spend on other basic needs such as food and clothing. They have to skip meals together with their children; their children too shall be forced to seek early jobs so as to supplement the family budget (ArabianMoney 2013). Many tenants have to live in uncertainty always pondering on the available options, the congestion also comes with dire consequences especially for the young children, and crime activity is bound to be on the rise.

Many tenants are looking for cheaper housing but then those houses are so competitive and getting one is not easy. Relocating shall mean loosing your best friends and those who have been like a family to you. There hardly remains any money to pay for children education let alone investing for the family’s future. If a lasting solution is not put in place in the near future then certainly there would be a huge crisis (Yasin 2013). Employees should be better remunerated and a rent control ordinance put in place.


This research shall use a qualitative research approach. According to Burns and Grove (1993:777) and CITATION Zol07 l 1033 (Dornyei. 2007:) qualitative research is a formal, systematic, and objective process to elucidate and tests correlations and scrutinizes cause and effect of variable interactions. A descriptive survey shall also be used in this case CITATION Oli03 l 1033 (Olive 2003). Surveys will just be used to gather original data for elucidating the research population CITATION Cohed l 1033 (Cohen 2007: 205,206. 6thed). The survey shall obtain data from a sample study target population by means of individual reports, which the target population shall respond to a group of questions that shall be posed CITATION Bur93 l 1033 (Grove 1993).

The study shall use self administered questionnaires to collect data which shall be distributed individually to the research respondents by the researcher CITATION Bor89 l 1033 (Borg 1989). A descriptive survey was chosen since it gives a correct reflex ion or portrayal of the personality, such as opinions, behavior, beliefs, abilities and knowledge of a specific person, or group CITATION Hol02 l 1033 (Holloway I. & Wheeler 2002). This was so as to conform to the objectives of this study, namely to ascertain the relationship between the rising rent prices and the stagnant salaries.

Works Cited

BIBLIOGRAPHY ArabianMoney. “How Dubai house prices could still double again by the Expo 2020.” ArabianMoney. November 11, 2013. (accessed Feburuary 8, 2014).

Borg. Educational Research: An introduction. . New York: Longmann publishers, 1989.

Cohen, L. Manion and K. Morrison. Research Methods in Education . London: : Routledge Falmer, 2007: 205,206. 6thed.

Dornyei., Zoltan. ” Quantitative, Qualitative and Mixed Methodologies. .” In Research Methods in Applied Linguistics., 34. . Oxford University Press, 2007:.

Dubai, Livingin. “How much does it cost to live in Dubai?” Livingin (accessed Feburuary 9, 2014).

Grove, Burns and. Qualitative Research. 1993.

Holloway I. & Wheeler, S. Qualitative Research in Nursing. (2nd edn ed.). Great Britain: Blackwell Science Ltd.: Oxford, 2002.

Olive, Mugenda. Research methods Quantitative and Qualitative Aproaches. Nairobi: Acts Press., 2003.

Yasin, Kakande. “Sharjah residents feel effect of rising Dubai rents.” The National. December 15, 2013. (accessed Feburuary 9, 2014).

Zainab, Fattah. “Dubai Expat Rents Exceed Pay Hitting Competitiveness .” Bloomberg. November 18, 2013. (accessed Feburuary 9, 2014).