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Five reasons why Dubai living costs are falling

Five reasons why Dubai living costs are falling

It’s still not the cheapest city in the world, but with inflation at a five-year low, many essential items are becoming more affordable.

February 16, 2010 4:02 by



5. Better discounts

While many stores are currently offering discounts for the ongoing Dubai Shopping Festival, the financial crisis was already forcing retailers to lower their prices.

The case is especially true for luxury brands. A recent report by research firm Datamonitor found that 26 percent of consumers in the UAE completely stopped buying jewelry and watches, and 28 percent said they have cut back spending on luxury goods.

And hence, many of these luxury brands have been forced to offer attractive discounts to tempt buyers. A Forbes report in October last year, which examined the cost of luxury goods in nine global cities, found that a gold Patek Phillipe watch costs $14,996 in Dubai, the lowest in all the cities studied.

But it’s not just luxury brands that are lowering prices. Hotels have also been forced to slash their room rates; airlines are vying with each other to offer cheaper fares; and even regular clothes and cosmetic brands have discounts almost throughout the year.



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2 Comments

  1. Optimistic on February 17, 2010 9:52 am

    I am glad to hear this news. I have seen prices drop particularly when shopping for essentials.This can only get the average resident in Dubai back on their feet. We need to hear more positive news like this (as long as it truthful and unbiased).

     
  2. Anupama V. Chand on February 18, 2010 7:17 am

    Really? Do we residents of Dubai believe this to be true? I am afraid not….if there is one thing living in Dubai over some 10 years has proved, it is not to buy into these research details without a pinch of salt…..Real estate prices and rentsfaslling, I will grant you, but as far as prices of essential items and transportation costs are concerned, any average resident who has to get from point A to point B, in public transport will tll you that is all cock and bull. The Metro, despite its early premise of being a cheaper, more convenient form of commute, has not lived up to its claim – the ost of a family of four taking the Metro from point A to Point B and back again to Point A, is around the ame as if they took a taxi. That is because while it is advantageous for one person to take the Metro, for a whole family the taxi is more affordble…..and the more things seem to change, the more they remain the same…..even when it comes to food, prices of most items like oil, rice and flour, bread and dairy products have only gone up…where is the coming down? Or is it just me that can’t seem to see it? As for discounts, don’t be led astray? There is no such thing as a free lunch, and Dubai exemplifies the spirit if that adage, muh as I love this city! Let’s get a reality check on Etisalat and Du too….more money-minded telecommunications operators one would still have to come across….from substitute or replacement SIM cards to getting your evision connection cut off at the stroke of the mid-night hour, if you haven’t got eugh in th balance account, it’s all happening in Dubai, thanks to these two. And their cat-and-mouse games for customer loyalty are just that, as everyone knos they are all run as one unit when it comes to back office. Sorry to sound a deprecating ote on all the optimism, but let’s get realistic when we send out such messages to the world at large. Dubai could much more benefit from a transparent image, rather than one disguised in rainbow hues!

     

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