The middle income groups in Abu Dhabi can heave a sigh of relief, as they can hope to find more affordable housing, following the new measures taken by the government to ease the housing crisis.
The General Manager of Abu Dhabi Municipality, Juma’a Al Junaibi, when speaking during an interview said that the government is responding to the housing crisis situation by offering incentives to investors for developing houses for middle class sector.
The government is trying to actively motivate developers towards focusing more on middle-class housing, while also ensuring that they get a fair deal on their investments. The nature of incentives or the projects to be released are yet to be revealed.
Al Junaibi said that the housing problem in Abu Dhabi had been initiated by the economic boom witnessed during the past few years. Currently demand is surpassing supply and so the market price for rental properties increased deeply.
Both the government and private sectors have responded with solutions. The private sector has announced several new housing projects that are in various stages of development in Abu Dhabi and nearby areas. On completion, these projects will boost supply of rental housing, and rents will stabilize, Al Junaibi said.
A report released by Abu Dhabi Chamber of Commerce and Industry last year, recommended building complexes for low-income people. The chamber noted that majority of new projects in Abu Dhabi focused on high-end market, leaving the mid-market in scarcity of houses.
The report pointed out that supply scarcity is most acute in middle-income sector, while the highest demand is for single and double bedroom apartments. Abu Dhabi currently has about 320,000 housing units, which is expected to grow to 328,000 next year and to 340,000 by 2010. The City will have to wait until 2013 to meet the expected delivery of another 140,000 units to soften the housing crisis. Posted on 9/1/2009
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