Business | Property
Emaar to build low-cost homes
Emaar Properties plans to launch a low-cost housing unit to extend its reach into affordable housing for the region's poor.
- By Simeon Kerr, Financial Times
- Published: 00:15 May 21, 2008
- Mohammad Al Abbar, Emaar's Chairman.
- Image Credit: Supplied Picture
Sharm Al Shaikh: Emaar Properties plans to launch a low-cost housing unit to extend its reach into affordable housing for the region's poor.
Mohammad Al Abbar, Emaar's chairman, said the Dubai-based developer planned to acquire a company specialising in social housing that might launch projects in Morocco, India, Pakistan, Egypt and the Palestinian territories.
The move is a shift in strategy for Emaar, which has so far concentrated on luxury projects and has $100 billion (Dh367 billion) of projects under development. As its home market matures, the company has sought markets in the Middle East, North Africa and Asia to find fresh sources of revenue.
"We have been blessed but you have to do more. We might only get a three per cent margin but if we are good citizens we can't just take profit, we have to be able to stand tall in front of our children," said Al Abbar.
The Gulf's oil-fuelled investment boom has filtered across the Middle East and North Africa, but some still fear the wealth gap between the Gulf and the rest of the region booms.
Between 2002 and 2006, Arab Gulf states pumped $60 billion into the emerging economies of the Middle East, but that accounted for only 11 per cent of the flow of overseas investment from these nations, according to the Institute for International Finance.
UN officials have said the Arab world has not done enough to alleviate poverty, with the average rate of underweight children below five put at 13 per cent, rising to 38 per cent in the region's poorest countries.
Emaar, which has started social programmes around its property development on Lombok island in Indonesia, is also considering a development in Jakarta for a self-contained district around a skyscraper, mirroring the residential and commercial zone around Burj Dubai, the world's tallest tower.
Al Abbar said Emaar's Indian joint venture, Emaar MGF, would continue to expand across the subcontinent after it withdrew plans for an initial public offering in February.
Emaar, which focuses on the Middle East and south Asia, will continue channelling investment into the region, with impoverished Yemen the latest Arab country expected to host a new Emaar development.
Should large developers focus on building low cost housing within the UAE before investing overseas? Do you think incentivising land prices can facilitate such projects and encourage more developers? Tell us at letter2editor@gulfnews.com or fill in the form bellow to send your comments.
Your comments
I think the idea of low cost social housing is an excellent one and is something that is done here in the UK, although on a smaller scale.
Ali
Leeds,UK
Posted: May 21, 2008, 16:17
I was so happy to read that a low cost apartments will be coming to UAE. As now I can see my dreams coming true of purchasing a house in UAE. Thanks to Emaar for thinking about us!
Humair
Sharjah,UAE
Posted: May 21, 2008, 15:33
It is good to hear that Emaar will start building for low and middle class people in India.So many people are living in rented houses who cannot afford to build their own house.
premnath
Dubai,Dubai
Posted: May 21, 2008, 13:11
All property companies should build low cost houses in all the emirates to facilitate the living expense of medium living people. One year ago a family could live in one flat now most of the families are sharing apartments.
Shaji
Abu Dhabi,UAE
Posted: May 21, 2008, 12:23
Yes they should focus on building low cost houses here first. They should do only the walls, electricity and plumbing, and let people do the rest. We don't need Italian tiles or fancy tabs. We want a home we can afford not an exhibition.
Maryam
Sharjah,UAE
Posted: May 21, 2008, 11:45
Low cost housing is very much needed in the UAE, keeping in view of the skyrocketing rents in the country.
Dhar
Manama,Bahrain
Posted: May 21, 2008, 11:06
It's good to hear that a big company is planning to build low cost houses here in Dubai. This will be a very big help to all those whose incomes are not that much and cannot afford to live in expensive flats and apartments. I suggest they build houses especially for bachelors and low income families.
Ana
Dubai,UAE
Posted: May 21, 2008, 08:27
A welcome move by Emaar at the right time and it can lead to other similar developments. The shift towards low cost housing will hit the gigantic inflation prevailing in the UAE, in particular as well as the world in general. The government must ensure adequate policy framework to encourage these developments, as it brings a steady balance to society.
Sameer
Dubai,UAE
Posted: May 21, 2008, 08:01
Finally the time has arrived. Can middle class families afford to buy an apartment in Dubai or is it always a dream? We all will wait and see. Thanks a lot to Emaar.
Bipin
Dubai,UAE
Posted: May 21, 2008, 07:22
Of course they should build low cost housing. But they won't because of two reasons. 1) If they do, the rich will simply buy all of them and sell them back to the public at extremely bizarre rates simply because they can! 2) Dubai is trying to filter out the low and middle class and keep the high rich class, this is crystal clear as every day passes.
Milad
Dubai,UAE
Posted: May 21, 2008, 01:49
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