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New housing units need of the hour
Increase in rent is responsible for at least 30% of the inflation growth in 2007.
- Gulf News
- Published: 23:29 February 24, 2008
In the next 12 months there will be a shortage of 20,000 homes in Abu Dhabi, according to a recent study released by the emirate's chamber of commerce and industry (ADCCI). Some say the number is higher, as it could reach up to more than 35,000 units. The ADCCI study warns the problem is "getting worse".
The shortage is not only driving rents higher than what the middle class can afford, it has begun to drive investors away, according to officials in the chamber. The increase in rent is responsible for at least 30 per cent of the inflation growth in 2007, experts say. The problem "will take away the competitiveness of the business sector," says Khalfan Al Ka'abi, chairman of the construction committee at the ADCCI. Solutions are needed to speed up the building of new units - not the luxury ones but the more affordable ones and to strongly enforce a rent cap.
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