Affordable Property in the UAE Sees Growth Next Year
Notable investments and growth have been experienced by the affordable real estate market in the 2017. It is expected that a continuation of this progress is going to help boost the property market in the UAE for the next year.
This year has seen considerable commencement as well as completion of a number of luxury residences in the UAE. At the same time, the year has also seen a trend towards a regional movement and appreciation towards real estate that are priced at more affordable rates.
The constriction and development sectors in the Gulf are clearly enjoying the benefits of the upcoming VAT or value-add tax implementation. It is also seen to be an effect of the low oil prices in the region. At the same time, the region is seeing a market realisation pertaining to the development sector. This has been credited to have paved the way for less pricey construction projects to rally make an impact and gain a stronghold in many of the key geographies in the UAE.
It is even likely that UAE is presently the busiest market when it comes to projects that are considered as mid-market types. A recently released data reveals that of the developer in Dubai, 60% are presently engaged in affordable property schemes. Last month, Aqarat Dubai, a website focused on home finance, revealed that as of the third quarter of 2017, around 60% of the top developers in Dubai have opted to launch affordable units that are usually priced between AED 400,000 and AED 700,000 ($109,000 and 190,600).
Some of the top developers in the Dubai setting are also in the process of putting out long terms plans that will allow them to build neighbourhoods that are expected to witness high interest when it comes to affordable units.
Last month, developer Al Ghurair properties disclosed that its $1.36 billion development plan included such settings as Bur Dubai, Deira, Al Qusais, and Al Barsha. These developments are expected to be completed by the year 2020 and are comprised of 58 buildings that feature 3.25 hectares of retail space, along with 8,000 residences.
Meanwhile, Aldar Properties, from the UAE capital, launched its very first attempt in the mid-market this April. The Bridges, which is set in Abu Dhabi, is worth $350 million. This particular development is specifically designed to meet demand for ones that are high quality, yet affordable in destinations that are considered as prime investment zones across Abu Dhabi.
These investments on the affordable property niche are not something that the private sector holds exclusivity to. It is not a recent trend either. Sultan Butti Bin Mejren, director-general of Dubai Land Department stated back in July of last year that he is working with the Dubai Municipality and the Department of Economic Development to conduct a study that will include buyer financing and developer incentives in the affordable real estate market.
The affordable property segment is viewed as a significant opportunity for buyers and builders alike. The initiatives of the private and public sectors in the region are only going to help boost this sector come next year.