Emaar unit to launch 'affordable housing' in the UAE
An associate company of Emaar Properties, Dubai’s largest real estate developer, will soon launch an affordable housing project in the UAE, the company chairman told Emirates 24|7.
“There is an internal discussion on Dawahi Development.
“We have an associate company that may be taking on that responsibility and I think they might be announcing something soon in the UAE,” said Mohamed Alabbar, Chairman, Emaar Properties.
“It’s an associate of ours and that is going to take care of that level of market (middle income market),” he stated without giving any price range for the products.
In October 2011, Emaar Properties had announced the launch of its new wholly-owned subsidiary, Dawahi Development, a next-generation developer of ‘value housing’ projects within full-service community developments.
Dawahi Development will develop value homes at attractive price points in key emerging markets across the Middle East & North Africa (Mena), while also creating employment and business opportunities for the local population, the developer had said.
Earlier this month, Strategy& (formerly Booz & Company) said Gulf Cooperation Council (GCC) countries may face a shortage of more than one million homes by 2018 with the issue worsening as population grows and affordable homes being built decline.
“From 2000 to 2013, total population of the GCC rose by over 67 per cent, from 29.4 million to more than 49 million, and it continues to grow 2-3 per cent each year,” said Samer Bohsali, Partner with Strategy& said in a recent report.
“The relatively young demographic structure of the region is creating a surge in demand that could lead to a shortage in excess of one million units by 2018,” he added.
Back in September 2012, JLL, a global property consultancy, said the Mena did require 3.5 million "affordable" houses.
Dubai developers have been targeting the high end market and not focusing on launching development for the lower or middle income market.
Emirates 24|7 reported earlier that Tasweek, an Abu Dhabi-based developer, planned to unveil details of its affordable housing complex project by year-end with smaller townhouses/villas being sold in price range of Dh650,000.
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