Affordable flats in demand

Abu Dhabi: Low and middle-income earners in Abu Dhabi are facing a severe housing shortage, with affordable accommodation, particularly apartments, becoming increasingly scarce in the booming city.

The problem is forcing hundreds of residents into long queues at the Department of Commercial Buildings, better known as the Shaikh Khalifa Committee, to try their luck for the limited affordable accommodation on offer.

Residents say they are being pushed out of the market because of the skyrocketing rent. As such, many are forced to enter a daily draw held at the Shaikh Khalifa Committee, which manages 55 per cent of the buildings in Abu Dhabi.

Since the draw system was introduced in Abu Dhabi in late August last year, on a daily basis hundreds of people vie for a small number of flats.

On many occasions, people are turned away because there are no vacancies.

Dahi Al Suwaidi, assistant undersecretary at the Department of Commercial Buildings, admits the problem worsened after the construction of residential buildings stopped in Abu Dhabi in 1998 and demand increased, especially for one- and two-bedroom flats.

The department, he said, has no intention of cancelling the draw system as long as the housing crisis persists and the demand for flats greatly exceeds supply.

"The draw system was introduced to eliminate nepotism and influence in distributing low-cost flats," Al Suwaidi, said, adding that the department has recently prepared a report of the positive and negative aspects of the system after which Shaikh Mohammad Bin Khalifa Al Nahyan, Chairman of the Abu Dhabi Finance Department, ordered the continuation of the system.

Al Suwaidi anticipates that 70 per cent of the demand for flats in Abu Dhabi will be met by the end of 2008 or early 2009, when 300 residential buildings, many of them high rise, will be completed.

"Many banks will also finance buildings for private landlords, easing the problem further," he said.

Experts say rising real estate markets can translate into a decrease in affordable housing.

The UAE has not set an "affordability index," but in general, housing is considered affordable when its cost does not exceed 30 per cent of the median family income.

The average expenditure on rent, however, is 36.1 per cent of the family income, according to Dr Ahmad Redha, an economist at the Ministry of Economy. However, unofficial estimates put the figure at more than 40 per cent of the income.

The hike of rents and low availability of flats topped with demands of watchmen are least tolerable for an average- income family.Watchmen and agencies are playing a fraud behind the scene in which ordinary expatriates have to suffer the ill effects.
N. Suresh
Abu Dhabi,UAE

I was looking for an apartment for 6-8 months. Finally, a week before my wedding, I was able to find one. It did not match my budget but I did not have a choice.
Dalal
Abu Dhabi,UAE

For the past year, I have been looking for a two-bedroom flat in the city within the range of Dh50,000 so that I can still afford sending my son to school. I have not yet been able to find one and it is a torture.
Ihsan
Abu Dhabi,UAE

The Abu Dhabi Government is in the right direction. However, the construction of residential buildings should be finished as fast as possible so that the problem is quickly remedied.
Sunil
Abu Dhabi,UAE

I sent my family back to our homeland due to the high rent of flats. Authorities should take immediate action to build low-cost flats near Abu Dhabi to help low and middle class earners stay with their family here for a long time.
Mohammad
Abu Dhabi,UAE

I wouldn't say the landlords are entirely to be blamed for this as tenants sublet the flat to other parties for investment purposes. If this is controlled, I think there will be some sort of impact on the rent.
Rahman
Abu Dhabi,UAE

I have been searching a flat since January 2005. Unfortunately, I could not find any that fits my budget. I have no problem if the flat is 40 km away from my office.
Basheer
Abu Dhabi,UAE

I have been looking for a one-bed room flat or a studio house for the last two years in vain. I can afford to pay Dh25,000 to 30,000. I would prefer to stay in Abu Dhabi because my office is based in the city. I feel that the authorities must do something to control private agents who, I assume, manipulate the market and sometimes cheat people who are in need of housing.
Harish
Abu Dhabi,UAE

The eligibility to participate in the draw should be a bit more filtered. Presently for one flat over 300 people are applying. Families should be prioritised.
Mehrin
Abu Dhabi,UAE

I am a middle-income earner and I have bee looking for a one bedroom flat in Abu Dhabi to no avail since nothing seems to match my budget.
Cesar
Abu Dhabi,UAE