Abu Dhabi to build low-cost housing for UAE residents
Abu Dhabi General Services (Musanada), a government-owned company, is planning to build hundreds of low-cost houses in Al Manaief City in the Western Region.
As per the project brief issued, the city will have 500 studio units of 25 square meters each, 220 one-bed units of 40 square meters each and four community centres with a total area of 5,800 square meters.
A design consultancy tender has been recently floated.
Arabtec, a Dubai Financial Market-listed company, said in April 2014 it was in discussions with Abu Dhabi government to build thousands of new homes for lower paid workers around the capital.
Musanada was established in December 2007 by Law 27/2009 and provides support services to government entities in areas of facilities management, construction, contract management, catering, logistics, states the company website.
In 2010, the Abu Dhabi Urban Planning Council published a middle-income rental housing policy, with the website still stating it considers the provision of quality affordable housing as an important component in the long-term strategic development of the capital.
When issued, the policy had required 20 per cent of the residential gross floor area in multi-unit residential buildings within developer-led planned developments to be developed and managed as middle-income rental housing.
The key components put rental prices between Dh25,200 and Dh88,200 per annum, approximately 35 per cent of total annual household income with units being rented for a minimum period of 10 years among other regulations. However, there has been no update on the policy.
‘Emirates 24|7’ reported earlier that Dubai developers were now focusing on launching ‘affordable’ housing, targeting UAE residents in low- to mid-income level.
Read: Dubai developer targets UAE residents earning Dh9k-Dh15k per month
JLL, a real estate consultancy, said on Sunday demand for ‘affordable’ housing is expected to increase over the next 12 months as Dubai’s economy continues to expand and job creation grows.
Read Housing rents to fall in Dubai? 25k new units expected in 2015
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