Business | Property
Housing quota for low income groups
The Abu Dhabi Government will ask real estate developers to allocate 20 per cent of their number of housing units for lower income groups, a senior official has said.
- By Ahmed A. Elewa, Senior Reporter
- Published: 00:34 April 20, 2008
Abu Dhabi: The Abu Dhabi Government will ask real estate developers to allocate 20 per cent of their number of housing units for lower income groups, a senior official has said.
The recommendations were made in a housing study conducted by the emirate's Department of Planning and Economy. The study is to be presented to the Abu Dhabi Executive Council for adoption.
"The majority of the developers are focusing on the high-end market, a fact that contributes to the imbalances in the housing market today," Butti Ahmad Al Qubaisi, the department's assistant undersecretary, told reporters at a press conference on Thursday.
"Our studies revealed that rents constitute 58 per cent of the overall inflation rate, while it stands at 60 per cent at the federal level, followed by energy and transport with 15 per cent, and foodstuff with 11 per cent," explained Dr Ahmad Al Minnawi, the economic expert at the department.
"What we are now working on is a mechanism by which we can address the housing problem within the framework of the free market principles," Rashed Ali Al Za'abi, Director of economic planning, said.
"According to our study, the burden of housing is about 60 per cent or more on those who earn Dh5,000 or less, while it constitutes about 22 per cent for the higher income segments," Al Minnawi said.
According to the executive council's directives, the priority is to curb the housing problem. Hence the lower-middle and lower income segments will be targeted by Abu Dhabi's plan.
Do you welcome this move? How bad is the housing situation for low-income groups, according to you?
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