Abu Dhabi emphasizes developers to allocate homes for low-income sector

Abu Dhabi plans to emphasize real estate developers to allocate 20% of their housing units to low-income families. This is done with an aim to rectify the current supply shortfall in housing which is the main factor behind shooting prices.

According to the government officials, developers have been all the time focusing on high-end properties, and there were not enough houses being built for low-income or middle-income families, as they comprise majority of the population in the emirate.

According to the officials, lack of affordable accommodation for this segment of society has been the major factor behind the soaring housing costs of the emirate.

The Abu Dhabi Department of Planning and Economy (DPE) have made the recommendation during a recent housing study, which is now placed before the executive council for approval.

Housing costs have been severely blamed for the mounting inflation in UAE. According to an estimate by the Abu Dhabi National Bank, inflation in UAE hit a 19% high of 9.3% in 2006, which is likely to increase further during the coming years, as per the recent estimate by NBAD.

Posted on 22/4/2008

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