|
|
|
|
Dubai lacks low-cost housing: The building boom gripping Dubai holds a plethora of offers for modern living, with prices to match. Rental apartments at Festival City start at Dh5,400 per month, one-bedroom apartments at Jumeirah Beach Residence are selling for Dh1 million, while two-bedroom apartments at Dubai Marina are topping Dh1.5 million.
There's just one thing missing: affordable housing for Dubai's low-and middle-income workers. According to local property agents, Dubai rental prices have risen 20 to 30 per cent in the last year. Property agent Farooq Ahmad said apartments in Karama and Bur Dubai, have jumped Dh10,000. Apartments renting for Dh25,000 to 30,000 in 2005 now cost Dh35,000 to 40,000.
Mohammad Irshad, a property agent with Eagle Properties, said virtually all of the new housing coming to market is high-end, leaving many workers scrambling. Often families share apartments, with one family per room in the more affordable neighbouring emirate of Sharjah. Others chose to return to their home countries, said Irshad.
One resident feeling the crunch is Judeson Simethi. He and his wife both work to pay for their studio apartment in Sharjah. With his wife going home to India for five months, Simethi will now spend 80 per cent of his wages on rent. Facing bankruptcy, he must now find a roommate to share his one room apartment while his wife is away. He frets that prices could rise further, and recently his friend's rent in Sharjah was doubled overnight. With transport and housing costs rising but wages remaining constant, he said, "It's almost becoming harder on a day-to-day basis."
Mohammad Sultan Thani, manager of the information section at the Dubai Land Department, acknowledged the rising prices and said the government's position is to let market forces alleviate the problem. "I think there is a need for affordable housing, but who will take that case I don't know." One recently announced affordable housing development will be built in Ajman because land prices are too expensive in Dubai.
Amir Ameen, director of Star Giga Establishment, said the land price in Ajman for his Goldcrest Dreams project was around Dh40 per square foot compared with about Dh150 in Dubai. The four buildings will house 1,600 apartments when completed in 2009, and cost Dh285,0000 for a one bedroom apartment and Dh416,000 for two bedroom apartments. Ameen said he still hopes to build low-cost housing in Dubai, and is negotiating to buy land at affordable prices.
Via Gulf News
Related Stories:
Desert Rose Residences & Villas launched
ETA brings low-cost housing to Sharjah & Ajman
Housing Real Estate Company establised
|
|
|
|
|
| Most Viewed in Last 30 Days |
| Syndication |
|
|
|
|
