Affordable housing quotas in Dubai 'long overdue'
Cluttons boss says there is a 'huge pent-up demand' for cheaper homes across the UAE
The proposal by Dubai Municipality to introduce mandatory affordable housing quotas for all new residential developments in Dubai is long overdue, according to property consultancy Cluttons.
It argued that the move would not only bring a range of benefits to the emirate, but would also drive maturity in Dubai's property market by providing a more varied range of homes.
CEO Steve Morgan also said that the timing of such legislation was ideal, given that momentum in the housing market appears to have stalled after rampant growth in 2013 and early 2014.
Steven Morgan, CEO of Cluttons Middle East, said: “The issue of affordability has been one that has been quietly bubbling away in the background for some time. With the introduction of the Federal Mortgage caps and the doubling of property registration fees, we saw genuine end users in the market forced into a holding pattern as they attempted to make the transition from rented accommodation to owner occupation.
"The surging rents, driven by the exceptionally strong underlying demand, which was linked to the robust economic growth, meant that household finances were coming under tremendous pressure on several fronts.
“Now, of course, with rents starting to show greater stability, households have a window of opportunity to consolidate their finances and make that leap to owner occupation."
He added that there was a "huge pent-up demand" for affordable housing in the UAE with rent becoming unaffordable in many cities.