The annual cost of living report for the UAE has been released by Kershaw Leonard.  This recruitment and HR consultancy firm based in Dubai refers to the 2009 market as “survival of the fittest.”  Dubai has faced some of the most changes, especially with inflation reaching over 12%.  Some of the actual figures suggest that the figure is closer to 20%.  The turnaround in the market has lowered some of those figures, however.

For example, a studio apartment in Dubai Marina is now about 53% less than it was in September 2008.  However, in Abu Dhabi, prices have continued to increase.  In some cases, these prices are substantially higher.  One of the main reasons for this is that Dubai is seeing an oversupply of about 30,000 units.

This means that the prices for real estate, including rent rates, will continue to fall.  Right now, there is also about $582 bn real estate project on hold in Dubai, but in the longer term, many of the half-finished project will need to be completed.  These projects will affect the real estate prices as well.