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Urgent need to develop low-cost housing projects in the UAE
The number of luxury residential towers and high-end projects is growing rapidly in the GCC to meet the needs of affluent buyers, while only a few developers are developing residential and commercial projects that cater to the growing needs of limited and middle income groups.
- Staff Report
- Published: 00:15 June 29, 2008
Dubai: The number of luxury residential towers and high-end projects is growing rapidly in the GCC to meet the needs of affluent buyers, while only a few developers are developing residential and commercial projects that cater to the growing needs of limited and middle income groups.
The development of such affordable residential projects is extremely important as it will bridge the gap between supply and demand for low-cost apartments, and help restore balance in the market.
Skyrocketing property prices, driven by soaring oil and building material prices, has led to increase in rents and led to inflationary pressures.
"Developing affordable residential units for limited and middle income groups is an increasingly urgent need in the real estate markets today," said Saleh Sorayai, chairman of Snasco and Sharjah Investment Centre.
"Trends in the real estate sector are changeable and subject to supply and demand forces," he said.
"Developers and financers should focus on low and middle cost projects to ensure steady return for their investments, as the prices will stabilise on a long-term basis. When a balance between supply and demand is restored, then affordable property units will provide the steadiest return and will not lose value."
Important
"It is important for middle income earners to be able to own their apartments, which should be of high quality and reasonably priced," Sorayai said.
"Most middle income earners in the GCC countries are allocating a large portion of their monthly income for residence, therefore, the need to provide convenient apartments for these groups is urgent. "
Sorayai added that real estate market is witnessing a boom, saying that the increasing demand for property units is driven by the steady flow of expatriates into the country as a result of economic growth, high oil revenues and rising investment volume in the GCC countries.
When a balance between supply and demand is restored, then affordable property units will provide the steadiest return and will not lose value."
Saleh Sorayai
Chairman of Snasco and Sharjah Investment Centre
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