Low-income sector in Dubai seeks affordable accommodation

However, despite such measures, rents continue to rise, and due to salary disparities, families are being compelled to go in for cheaper accommodation.

The high-end properties developed by Baani, Emaar, Skygardens and Cirrus, for instance, overshadows the number of affordable housing solutions under construction. The International City by Nakheel for instance, is one such development offering low rents.

Developments meant for labour accommodation, such as the Al Rayan project in Al Mafraq area, are also underway.

But no projects are being dedicated for affordable housing for low-income groups. Although Deira and Bur Dubai areas in Dubai are historically known to offer cheaper housing, these areas are also seeing rent hikes, due to the growing popularity of these areas.

Analysts however, predict that over the next two years, more such units are likely to come up and there will be an overall correction in prices. According to the CEO of property management firm Asteco, Elaine Jones, the Dubai housing market will witness greater range of prices based on location and quality, towards 2010, although housing near the Metro stations would be costly.

A recent survey by Gulf News on rentals, showed that majority of respondents (more than 29 percent) spent 50 percent of their salary towards housing.

About 22 percent of respondents said they spent 20 percent of their salaries on rents.

However, only 7 percent of people are reported to have said that their company pays for their housing.

Although the salaries in the UAE had gone up during the recent past, the prevailing economic crisis has left a negative impact on things. With high cost of living in the UAE, expatriates are left with no option, but to send their family back home leading to further social issues.

Posted on 24/10/2008

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