According to a research conducted recently by the Core Savills consultancy, Dubai’s mid-priced properties are still not truly affordable for the middle class earners, despite of the widespread use of the term. That’s why DLD together with Department of Economic Department (DED) and Dubai Municipality are going to conduct a study aimed and resulting in affordable housing construction stimulating.
According to the definition given by the Dubai’s Municipality, the housing is considered affordable in case families with an income of AED 3,000 to 10,000 per month can afford buying it, and according to international standards, ‘affordable’ housing is defined as a residential property that costs up to around 80 percent of the market average and is typically subsidised by the state.
In recent years, as imexre.com has continually reported, developers’ interest in Dubai’s affordable real estate sector has grown significantly. As a result the number of such projects in areas like IMPZ, International City, Al Furjan, Karama and even Dubailand has also increased significantly. For those looking for decent options in this housing segment imexre.com advises paying attention to such residential complexes as Serena, Al Waha, located along the Emirates Road in Dubailand, or The Ritz development near Ibn Battuta Mall in Al Furjan.
A wide market choice of housing units costing under AED 1 million get especially important at the background of the recent international banking system changes making many expats wishing to get residency status in the UAE, which is available in case of buying an apartment priced at AED 1 million and higher.
Thus, to make off-plan apartments and houses truly affordable Dubai’s authorities intend to take a number of measures. In particular, a new law by Dubai Municipality for mandatory 15-20 percent affordable housing in all future residential developments may improve the situation, as well as another new law in the area of public-private partnership allowing developers to significantly reduce the cost of land for the affordable housing construction.
Nevertheless, DLD director-general Sultan Butti Bin Mejren also noted, that despite the lack of affordable property options at the market, Dubai still has a status of a most inexpensive among other global cities in terms of average housing cost.