The need for affordable housing in UAE

Developers understand not only the need for affordable housing but also the expectation for a community that offers more valueRakesh Mirchandani, Director, KGR Real Estate, Special to Freehold

After reading the article published in the Arabian Business on the increasing cost of living in the UAE, I personally felt there could be a growing and increasing demand for affordable housing in the country.

As mentioned in the same publication, a recent survey conducted among 1,100 residents found out that 56% of the respondents said rents had a major impact on their savings or financial well-being.

With an amazing lifestyle and with all modern comforts within reach, Dubai, considered the city of dreams, is becoming more costly.

There are a lot of real estate developments all over the country, most of them in Dubai.

A lot of people admire the different offerings but could not afford to buy a place they can call their own.

Most individuals hardly even meet their monthly expenditures due to the increasing rental values.

Most of these individuals have the desire and willingness to purchase a place which they may one day call their home. Hopefully, their dream of having one will be fulfilled soon.

Recently, we have read about more launches in the heart of New Dubai.

New Dubai refers to the areas closer to the Expo 2020 site yet still connected to the heart and center of the city.

The new projects announced are in communities such as Jumeirah Village (including Jumeirah Village Circle and Jumeirah Village Triangle), Dubai Sports City, International Media Production Zone (IMPZ) and Dubai Studio City, extending all the way to Mira, a vast community located on Al Qudra Road.

Town Square is one such new development. The mega project will feature townhouses and a central square the size of 16 football fields.

The developer has just announced in a big way the launch of the second phase of the development, a residential project called Hayat Townhouses with prices that start at Dh999,988 for a three-bedroom unit.

Hayat Townhouses follows the launching of Zarah Townhouses which offers three and four-bedroom homes with a starting price tag of Dh 999,888 on a flexible payment plan.

Three leading financial institutions have joined hands in offering home finance services to potential buyers at Town Square.

The developer understands not only the need for affordable housing but also the expectation for a community that offers more value in terms of a central park, a shopping district, retail outlets, cafes and restaurants, hotels, healthcare facilities, cycling tracks and a cinema complex.

I personally feel that given that the rents are still considerably higher compared to 2012, now is a good time for anyone planning to purchase a property to invest or buy his own place.

Interest rates offered for mortgages or home finance services have decreased.

The payment plans or terms offered by developers for their off-plan or under-construction projects are more flexible now.

Potential real estate buyers, including both investors and homeowners/end-users, feel that this could be the right investment and the right time to buy.

After visiting the Dubai Property Show in London, which was held just recently, where many real estate developers showcased their forthcoming projects, I noticed that majority of these projects will be located in upcoming areas and will primarily focus on consumers looking for affordable housing.

With this development, the many residents who demand affordable housing projects to come to fruition can look forward to a plethora of options once all these reach completion in the next few years.

Source: Rakesh Mirchandani, Director, KGR Real Estate, Special to Freehold


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