For months and even years people have been talking about affordable housing in Dubai and whether it is even possible. An extremely expensive place to live, Dubai is known internationally for its luxurious style and record-breaking destinations. But with a large amount of the 2.3 million strong population earning lower wages, it’s important to think about those types of people and how to cater to their needs.
As the Expo2020 draws nearer, this will be a topic hot on the minds of real estate developers. One of the factors of Expo will be to show that Dubai is not only amazing, but also attainable, ensuring people aren’t put off about moving or doing business here because of its reputation in the world media. With the Expo, more people will be moving to the city, a large amount of whom will be wanting to save money during their time here, rather than spend it all on high rental prices.
Of course to live in the most desirables areas of the city such as Downtown Dubai or Dubai Marina, the rental prices will always be high. However, in newer communities or even in less sought-after areas, the rents need to stay low to balance out the market. At the moment, the main option for those looking to save a buck is to move in with friends in shared accommodation or move to a part of town that they would rather not live in. Residents shouldn’t feel like the decision is out of their hands, but instead should see that they can live where they want to live without getting into debt to do so.
The gap in the market for such developments could really be a strong investment for real estate moguls. With a lower rent or purchase price, you would be more likely to secure tenants or buyers. The only challenge is how to create these developments without going bust! The only obvious option at the moment is to build in areas that are cheap to buy land, such as inland where the communities aren’t located near many amenities. However, as the city of Dubai continues to grow inwards towards the desert even further, these types of communities would no longer be isolated, meaning that in 5 years or so, the once cheap buildings would then be more desirable and so rental prices would increase again.
It’s a spiraling circle but whatever the solution, property developers need to come up with something. There is money to be made here and there is a strong demand to make Dubai a more attainable and realistic place to live, where everyone is welcome to build a life. However, only time will tell whether affordable housing will become a reality, or whether it’s just another hot topic to talk about in the industry.