New middle-income rental housing policy in Abu Dhabi

The middle-income rental housing policy, as announced by the UPC, also said that such multi-unit residential buildings, being constructed by developers, as part of planned developments in Abu Dhabi, will have to reserve 20 percent of the residential Gross Floor Area (GFA) to the middle income group.

A representative of UPC, who spoke to media, said that the new policy should be implemented from this month. The policy will not be applicable developments comprising single family structures like villas and town homes, the release said.

According to legal experts, the current laws in Abu Dhabi, stipulate that tenancy contracts carry a validity period of five years. But, the tenant has to renew the contract and give a five percent rise on the rent prices each year.

The newly introduced policy will be applicable to rental accommodations for middle income earners with rents that are approximately 35 percent of total annual household income, the policy said.

The UPC is now working with Abu Dhabi municipality to monitor and enforce the programme. The new policy has mandated the minimum floor areas for various accommodation options, such as 40, 50, 70 and 90sqm for studio, single, double and triple bedrooms respectively.

The General Manager of Abu Dhabi UPC, Falah Al Ahbabi, expressed his confidence over implementation of this policy, which could be a significant milestone towards creating requisite affordable housing options for residents of Abu Dhabi.

A recent real estate forecast study by UPC had revealed that Abu Dhabi residential sector is facing shortage of residential units at present, to meet demand of current population, and the shortage was particularly among the middle income groups.

Posted on 26/7/2010

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