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Two-hour Commute an Ordeal for Students

DUBAI // Students are being forced into two-hour commutes to lectures because of the high cost and shortage of accommodation in Dubai and Sharjah. The housing shortage has led the University of Wollongong in Dubai to open an accommodation block in Ajman. About 45 students stay in the eight-storey block, which opened at the start of term in September. The university expects it to reach its capacity of 190 students within a year.

Daniyar Rakhimov, 18, a first-year student from Kazakhstan, said, “It’s very good accommodation but it’s far from the university.” To attend 8.30am lectures, he wakes at 5am to catch a 5.45am university bus to Knowledge Village. The journey takes up to two hours. He spends the time reviewing course notes, listening to music or sleeping.

Accommodation costs Dh22,500 a year per student in Ajman, compared with Dh48,000 at the university’s apartment blocks in Jebel Ali Gardens and Dubai Investment Park, each of which has about 100 students. The trip from Jebel Ali Gardens takes about 20 minutes. From Dubai Investment Park it is 40 minutes. Jay Jayatilaka, the university’s international marketing manager, said the accommodation in Ajman was the nearest complete apartment block the university could find at a reasonable cost.

Hajiaga Musayev, 17, a business administration student, has grown to dislike his daily commute from Ajman. He has to get up at 5am four days a week because the journey between his accommodation and the university takes as long as two and a half hours. Usually, he said, he did not complete his university work until 11pm or midnight, making it difficult to get a full night’s sleep.

Source: Bardsley, D. (2008). Two-hour commute an ordeal for students. Retrieved November 2nd , 2008 from

Rising Rents

UAE residents are reaching breaking point over the country's mounting rents. In an effort to cut costs, people are moving to cheaper homes, sending their family home or changing their lifestyle. Some have even considered leaving the UAE.

Almost a third of respondents to a survey on UAE accommodation said rent increases have forced them to move out of their home in the past 12 months. Two thirds said the general cost of living has made them consider abandoning the country forever.

Responding to a YouGov survey, 64 per cent of Asians said they have considered leaving for good, compared to 70 per cent of Arab expats and 74 per cent of Westerners. The figures show that rent is the primary cause of residents' concerns. 70 per cent of those renting said they have contemplated leaving. Almost one in five said they have moved to another emirate.

Although some residents will go as far as moving house or leaving the UAE, most will try to adapt their lifestyle to accommodate the cost of renting accommodation. Asked what options they would seek if rent becomes too much to bear, a third said they would move to a smaller home. And another third said they would consider moving out of city centres.

Statistics also reveal that some families are being broken up as a result of rent increases. 15 per cent of all respondents said they have been forced to send their family back to their home country. Cases of split families were more frequent among Asian respondents (23 per cent) than Westerners (3 per cent), Emiratis (14 per cent) and other Arabs (14 per cent).

Source: Rising Rents. (2007). Retrieved September 4th , 2008 from

UAE Facing Housing Crisis

The UAE is currently facing a serious housing crisis. Finding affordable housing is becoming more and more difficult for people at all levels of society. A major factor of the crisis can be seen in Abu Dhabi, where there is a severe shortage of residential apartments. Official studies and market sources confirm there is a huge gap between the supply and demand of residential units. And they warn that the situation could turn into a crisis next year.

A study carried out by Abu Dhabi Chamber of Commerce and Industry (ADCCI) said that until 2005 the market was stable with no shortages. The number of residential units in Abu Dhabi totaled 287,000 – enough to meet the demand at the time. All types of apartments were available, from low-cost units to costly luxury apartments.

However, between 2006 and 2008, the population of Abu Dhabi rose by 100% causing an acute shortage of property available for rent. In 2006, there was a shortage of 3,000 residential units. The problem worsened last year when the shortage grew to between 7,000 and 8,000 units. This shortage is set to reach at least 20,000 units in the coming years. The report suggests that new buildings in Abu Dhabi will meet only 20 per cent of the increased demand this year, resulting in a housing crisis next year. A further contribution to the problem is most of the units coming on to the market now are designed for those with high incomes, while people with medium or low incomes are most affected by the high rent.

Source: Hoath, N. (2008). UAE facing housing crisis. Retrieved October 6th, 2008 from

Expats Search Suburbs for Rent Solution

Skilled expatriates are searching for affordable accommodation in isolated areas of Abu Dhabi in response to the capital’s housing crisis. Consultants, architects and teachers from Europe and North America cannot afford housing in a market that is experiencing an unprecedented shortage of vacant homes. Squeezed out of Abu Dhabi Island and surrounding areas, they are moving into undeveloped suburbs that line the Abu Dhabi to Dubai motorway. Places such as Shahama and Al Rahba have become popular among expatriates because they are relatively inexpensive.

Vera Zikic is a mother of two who works in the transportation sector in Abu Dhabi. She and other expatriate professionals have moved out of the capital into Al Falah and Shamkha – about 40km beyond Abu Dhabi. Located tens of kilometres from hospitals, markets and cinemas, Ms Zikic said services and basic amenities in these cities were seriously lacking. The nearest medical facility was about 20km away in Bani Yas.

Source: Naylor, H. (2008) Expats search suburbs for rent solution. Retrieved October 15th, 2008 from

Soaring Rents in UAE

One contributing factor to the housing crisis is population growth. Approximately 700-800 foreigners are said to arrive daily in Dubai to keep up with the labor market demands. Similarly, the population of Abu Dhabi has increased by 100 per cent between 2006 and 2008.

That has sharply increased the need for housing,

In addition, there is a shortage of a particular kind of housing; while luxury accommodation is still available, affordable housing is increasingly difficult to find. An average one-bedroom apartment in Dubai costs $1,500 a month, which can be 30-50 percent of a Western expatriate's salary in the U.A.E. This also contributes to the problem.

The actions of landlords have also played a part in creating this crisis. Aware of rising demand, many have chosen to raise the rents on their property. In Abu Dhabi, between 2007 and 2008, rents for some residential units increased by 140 per cent. Although the amount of available property is growing, most new buildings contain only luxury apartments that very few people can afford. The annual rent for a one-bedroom apartment ranges from Dh80,000 to Dh100,000 ($21,680) and a two-bedroom flat costs from Dh120,000 to Dh150,000. ($32,520 - $40,650)

Source: Pejman, P. (n.d.). Soaring rents in the UAE. Retrieved October 8th, 2008 from

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