Dubai: Dubai Properties Group (DPG), part of Dubai Holdings, recently announced the completion of Ghoroob, a residential development catering to mid-income families that is expected to help rents ease in Dubai.
"In markets all over the world the majority of housing is mid-market and in the last five years there has been a virtual absence of true mid-income housing in Dubai. This development is an important addition to the housing stock," Blair Hagkull, managing director for Jones Lang Lasalle Mena told Gulf News.
The 3.3 million square feet development will feature a mix of studio, one, two and three-bedroom apartments ranging between 956 square feet to 1,861 square feet.
Evolving demographics
"Ghoroob Mirdif is a comprehensive apartment community that will transform the landscape of Mirdif. The completion of this project bears testimony to the diversity of our real estate portfolio, which has been devised to meet the evolving demographics trend in Dubai," said Khalid Al Malek, group chief executive officer of DPG.
The project's location in Mirdif, a traditionally family oriented neighbourhood means its residents will have easy access to schools and the new Mirdif City Centre.
The development is also in close to the Mirdif Rashidiya Metro Station, the Dubai International Airport and major roads such as Emirates Road and Al Khail Road.
"What's important is that this type of housing is part of a integrated community. This good quality affordable housing in a community is increasingly what families are looking for and will perform better in the broader market," Hagkull said.
"This was a project that was always planned for middle income residents. With these type of developments, often the design tends to be more simple which means it tends to keep its quality."
Low cost developments such as this are needed in a market where rental prices continue to drop. A recent report by CB Richard Ellis shows that residential lease rates eased by as much as 33 per cent over the same period in 2009.
Areas such as Barsha, Bur Dubai, Shaikh Zayed Road, Marina, Greens and Jumeirah Lakes Towers (JLT) saw rents drop as new supply came onto the market.
The highest drop in the freehold category has been in JLT and the Greens which saw lease rates easing by 40 and 36 per cent, respectively, while the highest drop in non-freehold developments was in Barsha which witnessed a decline of 44 per cent from the market peak.
Rental rates in Mirdif are also becoming increasingly attractive. Five-bedroom villas can be found in the area for around Dh130,000 while apartments in the residential Shurooq development begin at Dh35,000 for a studio and Dh64,000 for a two-bedroom villa.
DPG has expanded its leasing channels to accommodate the high demand for affordable villas and apartments in the region.
