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Sat 28 Apr 2018 12:38 AM

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Abu Dhabi affordable homes more than double in four years

Colliers report says affordable housing now makes up over 15% of the total market in UAE capital

Abu Dhabi affordable homes more than double in four years

The supply of affordable homes in Abu Dhabi has more than doubled over the past four years as demand has soared, according to a new study.

Colliers International's report - first issued in 2014 - said the UAE capital has witnessed significant regulatory and competitive changes, including the introduction of new affordable housing plans.

Tier one developers have also launched more affordable developments which have proved successful despite the increasingly competitive market.

Mansoor Ahmed, director, research and advisory at Colliers International MENA, said: “Abu Dhabi has more than doubled the stock, to over 15 percent of the total market of affordable housing during the four-year period.

"With this new supply, such as the new launch of Al Ghadeer by Aldar and with the increase in developments offering community facilities, we are seeing an opening up for new affordable properties with a resultant migration from old units to new, more modern ones.”

Ian Albert, regional director and head of research and valuations at Colliers International MENA, added: “One of the key drivers has been the yield returns to investors. Our analysis shows that currently, irrespective of unit size, the highest yields are found in the affordable areas or the smaller units in the mid and upper sectors”.

In the original 2014 study, Colliers studied average income levels of households in the emirate and highlighted the opportunity for developers within this undersupplied market.

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