abu dhabi needs to plan more affordable homes
News Posted On: 09 November 2011
Abu Dhabi developer, Sorouh Real Estate is currently working on a plan for more homes for middle income families. In July last year the Abu Dhabi Urban Planning Council announced that all major residential property developments in the capital would have to have rental options for middle income families, which would be set at around 35% of total annual household income. Last November Sorouh said it was looking at options on how to meet with this requirement issued by the UPC.
Affordability is still a problem in Abu Dhabi, and even though a recent report by CB Richard Ellis found rents had lowered, it also found many developments were still targeting luxury markets. Lower-priced accommodation still tends to be in areas devoid of facilities and amenities, and public transport links are often poor.
This lack of facilities often deters people from living outside central areas, and needs to be taken into account when planning affordable housing.
In spite of the UPC planning guidelines, under which at least 20% of new residential property is supposed to be set aside for middle income earners, only a few affordable housing projects have been announced. Apparently most developers feel it is unrealistic to provide housing at the rentals stipulated by the UPC, as they say they'll be unable to generate sufficient profit.
Residential rents in the capital have fallen by 7% during the third quarter compared to the second quarter, with older units performing the worst. However prices of residential property have remained stable despite demand having remained weak.
View UAE property for sale
Written by Les Calvert
Back to news articles for this country
Latest Related News Articles in United-Arab-Emirates
New Dubai law Could See Investors Offered Full Refund
2012-05-15
A new law could be introduced in Dubai by as early as the end of June this year, and would enable pr.....
Dubai Property Market Gets New Law to Protect Investors
2012-04-23
The Dubai Land Department has announced plans for a new law to protect investors when buying off pla.....
More Properties set to go up for Auction in Dubai
2012-04-19
The Dubai Land Department is set to auction up to 80 properties later this year, as banks are lookin.....
Overseas Property Where are they Now Part 2 Dubai
2012-04-10
But now, after one of the worst property crashes in the history of man Dubai is finally clawing its .....
Dubai Residential Property Market Sees Continuing Growth and Stability
2012-04-03
Dubai's residential property market is seeing continuing growth and stability, as residential sales .....
Dubai Jasmin Garden Owners Offered Refund of Sorts
2012-03-21
A Dubai developer has issued promissory notes to investors equating to a full refund for the Jasmine.....
Dubai Property Prices Increased during the Fourth Quarter of 2011
2012-03-16
According to Knight Frank's global house price index, prices of residential property in Dubai increa.....
Dubai Developer to Start Selling on Palm Island Once More
2012-03-05
Nakheel, the Dubai developer which ran into financial trouble back in 2009 is to start selling prope.....
Dubai Property Market to Remain Challenging This Year
2012-02-08
The property market in Dubai is expected to remain somewhat challenging this year, even though certa.....
Reuters Poll Predicts 5pc Price Falls in Dubai 2012
2012-02-02
Property prices in Dubai have near-constantly declined during the last few years, and this year look.....