Affordable housing boom may lure residents to Dubai

1 min read

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The affordable housing scheme in Dubai has received a major governmental boost and several real estate developers are now planning these housing schemes in the southern districts of the Emirate which is home to a majority of the low cost developments. This area is expected to witness a major spurt in the number of working class buyers. The low cost housing initiative has gained more traction since the Government approved the low-income housing policy. The impact is also being witnessed in the Northern Emirates.

Several new affordable housing projects in southern regions may spur a sort of reverse migration, leading to drops in rentals in Ajman and Sharjah. Landlords are even offering rent-free periods and monthly payment facilities for retaining their tenants according to experts. The new housing policy aims at offering low cost residential housing units to buyers along with undertaking renovation of older areas. The new affordable housing projects are located in and around Dubai Sports City, Al Furjan, Dubai South, Jumeirah Village Circle, International City, MPZ, Dubailand and Studio City will have an impact on luring the working classes in Ajman and Sharjah.

There are thousands of people who commute every day to Dubai from Sharjah and Ajman and they will eventually shift closer to their places of work in southern Dubai. The future extension of the Dubai Metro will also link the Expo 2020 site to the Nakheel Harbour and Tower station, enabling lower income classes to consider more affordable housing options. Rents will go down further in Ajman and Sharjah this year. The Dubai Municipality in 2015 has classified affordable housing as living spaces for those who are paid between Dh3,000 and Dh10,000 per month as salary. 100 hectares of land and more has been allocated for affordable housing in Al Qouz 3, Muhaisnah 4 and Al Qouz 4 for meeting demand from people in this category. These developments will be home to more than 50,000 individuals.

There is a voluntary mechanism for developers to keep 15% of units separate for lower-income customers. The affordable housing segment is expected to get a further boost with public-private partnerships where the Government offers land free of cost for lowering housing costs according to experts. Ventures like these are the need of the hour since developers face challenges in offering low-cost units due to the high prices of land in most parts of Dubai.

 

Resident Editor