Affordable homes campaign for UAE capital

AFFORDABLE HOMES: The need for lower priced properties in Abu Dhabi is being addressed. (Getty Images)

More afforable homes are to be built in Abu Dhabi to combat the issue of soaring rents and property prices, it has been announced.

The Urban Planning Council (UPC), the agency that oversees the emirate’s long-term development, will allocate land - most likely in the planned Capital district between Musaffah and Khalifa City - to developers to build new housing for low and mid-income families.

It will also work with developers to increase the amount of affordable housing in projects already underway, including in the special investment zones where expatriates are eligible to purchase property, UAE daily The National reported on Thursday.

“We are working with developers willing to build affordable housing and we will help them,” Falah Mohamed al Ahbabi, the council’s general manager told the paper.

A recent report by property services company Asteco revealed that rents in the city had rocketed by 49 percent in the last year and across the UAE, skilled expatriates are beginning to think again about moving to the region because of the rising cost of living.

The announcement on affordable homes comes after property consultants Colliers International claimed most of the 140,000 housing units due to be completed between 2011 and 2013 were luxury developments.

A study commissioned last year by Al Rayan, a real estate developer focusing on building lower-cost homes, found that 350,000 people in the emirate on low or middle-range incomes needed more affordable housing.

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Demolishing versus New proejects
Posted by Hani Mahshi, Abu Dhabi, UAE on Friday 29 August 2008 at 15:27 UAE time


The announcement of seriously considering medium and low income housing in future projects is highly welcome. It is healthy for the economy in general. Such projects may take up to 3 -5years to develop, construct and make them available.

In parrallel however and in full coordination with the Committee for Housing Rental Disputes-Executive Council, they should stop or defer decisions in any demolishing. Many landlords are still unlegitimately claiming that they need to demolish their buildings because their buildings are already 25 years old, whilst the buildings are in absolute good conditions. It is obvious that their intention to demolish does not take human considerations in account, but exclusively grasping the prevailing investment opportunity.

Further, in case of demolishing order is given, the suffering tennants should be given priority to move into the proposed medium to low cost housing and full coordination between the departments concerned to register and record such incidents before they take place to ensure that those who will be suffering from losing their apartments in a building to be demolished can immediately move to an alternative housing.In other words, proper management of supplu and demand.

(I can give you a current example of an excellent building whose landlord is trying to obtain demolishing order. If he is successful, 120 families will lose their housing, in addition to many businesses and shops. Perhaps you could demonstrate this as a good example).

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