If you live in Abu Dhabi or Dubai, you are quite possibly paying more than 50 percent of your earnings just for rent.


Average rent expenses in Abu Dhabi come out to nearly 70 percent of average net earnings whereas in Dubai they average out to just over 55 percent, according to a report [PDF] published last week by Global Cities Business Alliance .

The report characterized both of the United Arab Emirates' prime cities as having high rent compared to relatively low salaries.

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In fact, Abu Dhabi has the third highest rent of the cities included in the report, averaging $2,460 per month. Additionally, when taking into consideration average net earnings compared to average housing costs, Abu Dhabi comes in as the second most expensive below Beijing.

In regards to Abu Dhabi and several other cities, the report says, "Although the average amount spent on housing in these cities is lower than in some of the other considered locations, average wages are also lower which creates significant affordability issues for residents."

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The report "examines the economic impact of high housing costs, the effect on businesses and social wellbeing, and the potential economic gains from affordable housing provision across 15 global cities."

Of course, economically successful cities around the world are often plagued by high rent.


"The social problems are well documented – with rising rent and house prices leading to social change as lower earners are pushed out of cities. Longer commutes, a result of individuals relocating to cheaper areas, can have a negative impact on wellbeing, especially if journeys are overcrowded," the report says.

So, will Abu Dhabi and Dubai address high rent before it gets out of hand?