Abu Dhabi Municipality to provide homes for fixed-income earners
XAbu Dhabi City Municipality has announced plans to provide residential units for fixed-income earners in collaboration with commercial property developers
Abu Dhabi City Municipality (ADM) has announced plans to provide residential units for fixed-income earners.
The initiative, details of which were announced by ADM’s Department of Municipal Affairs & Transport, forms part of the municipality’s strategy to provide suitable accommodation for all community segments.
The scheme will offer investment opportunities to commercial property developers, enabling individual landlords, developers, and investors to construct new buildings or convert existing properties into homes to suit the financial means of fixed-income earners.
Building modifications will be conducted in line with redesigned and revised stipulations governing interior designs, according to ADM.
HE Musabbah Mubarak Al Murar, acting general manager of ADM, said: “This initiative aims to provide proper and legal options of residential units befitting the financial means of low-income individuals and, at the same time, open an investment opportunity to owners of commercial properties in the [Emirate of Abu Dhabi].
“The initiative is in line with the vision of Abu Dhabi government, aimed to provide all means of decent and stable living for all spectrums of the community. It will also offer support to fixed-income groups by availing them accommodation at affordable rents that commensurate with their annual income levels.”
The initiative will target existing buildings that have been divided in a way that falls short of licensing conditions. It will also apply to divisible properties that are undergoing extensive maintenance, premises occupied by bachelors, and new buildings.
Residential units to be developed as part of the initiative will feature monthly rents ranging from $250 (AED917) to $425 (AED1,563). The homes are expected to offer owners returns on investment (ROIs) of 21% to 28% per annum, $1.09m (AED4m) of savings in total building costs, and reduce the construction period by up to eight months.
The rental values of the properties will be calculated at a rate not exceeding 35% of the occupant’s total income, and consideration will be given to the total number of occupants.