How Dubai is constructing for the future by utilizing inexpensive homes
Published Date: 18 Jun, 2024
How Dubai is constructing for the future by utilizing inexpensive homes?
Walid Zahra, 27, travels 25 minutes from his Dubai office to his house, assuming he does not include the 2 hrs he spends in traffic at a cafe.
The human resources employee claims, "I decided that reading papers would be a better use of my time than worrying in my car."
Mr. Zahra is a Lebanese dad of one who commutes from Sharjah to Dubai for work since, like many others, he cannot afford to reside there. With traffic becoming increasingly congested, the city is developing strategies to mix reasonably priced residences among an array of opulent villas and upscale apartments.
"We cannot simply keep constructing bigger roads, bridges, and tunnels," states Abdullah Rafia, the Dubai Municipality's assistant director-general for engineering and planning. "Dubai's mobility issue can be solved with affordable housing like the cheapest apartment to buy in Dubai."
Dubai has to deal with this immediately.
Affordable Housings
"Future companies will be deterred from relocating here if the elevated costs of living and rents are not addressed," says Martin Cooper, head of Middle East realty at Deloitte with a presence in Dubai. Because affordability is becoming a problem for even people with relatively high incomes, they must begin addressing it right away.
Developers should set aside 15 to 20 percent of their developments for affordable housing, according to the government, as one of the actions implemented or planned. At this time, Mr. Rafia states, "We are keeping it optional." "We'll implement rules that are mandatory for all individuals after some years, if necessary."
He believes that while authorities can do so, they currently have no plans to construct affordable housing themselves. The majority of undeveloped land is owned by the government, which also has shares in several developers, such as Nakheel, Meraas, and Dubai Properties Group. Because of this, Mr. Cooper claims, "the Government may affect their decisions."
Past of Affordable Housing
Attempts to achieve affordable housing like cheap and best apartments for sale in Dubai have failed in the past. The amount of subsidized and affordable dwellings completed in England decreased by about 30% in fiscal 2014 compared to three years earlier, based on official statistics, after the UK's Conservative Party-led ministry cut direct funding on such projects by 60% between 2011 and 2015.
A US-based real estate company named Colliers International calculates that, if you take out the lowest-paid workers like cleaners and construction workers, about half of Dubai's population makes between Dh9,000 and Dh15,000. Housing expenditures should be between Dh32,500 to Dh54,000 per year, based on the United States ratio that states rent or mortgage fees shouldn't exceed 30% of household income.
There are a few locations in which studio and one-bedroom apartments are available for rent in that range, including Discovery Gardens, Dubai Silicon Oasis, International City, and portions of older Dubai including Al Qusais, Deira, and Al Nahda. Colliers claim that rent increases in particular neighborhoods have been greater than those in the municipality as a whole. According to a survey by broker JLL, villa rentals increased by 5% in Dubai during the fourth quarter, while apartment rentals increased by 18% over the same period last year.
Govt. Subsidies
Matthew Green, head of UAE analysis at CBRE, a commercial real estate firm with offices in Los Angeles, asserts that government subsidies and reduced land costs are critical to boosting the supply of affordable housing. By giving land and inviting private contractors to submit bids for the job, the government can also encourage widespread building.
Date: 18 Jun, 2024
