Economic pressures and mounting inflation have made it difficult for ordinary citizens to live in expensive places like Abu Dhabi and Dubai. The accommodation costs get hold of the major share of income. Affordable homes were the need for Abu Dhabi’s low income population which wasn’t earlier seriously looked into. Nowadays, demand for middle income projects has tilted the shift to the low and middle income earners. The UAE capital is set to build around 15,000 new homes. Under the new scheme the rents would be as low as AED 25,000 a year. This seems quite a milestone in itself as financial crisis hasn’t been able to get the rents down to a level that would make homes affordable for less earning individuals and their families.

The final date for the availability of these homes is still not known, but they are anticipated to start rolling out in one to two years time. Rents are also tied with the income of the household s. It is rare that you should have income below certain to qualify for something. This time only people with incomes not exceeding AED 252,000 a year would be able to qualify for tenants. New rules also mandate the inclusion of homes for every development that is greater than 75,000 square meters in size excluding individual villas and townhouses. This is a big policy move by Abu Dhabi as it will ensure people with lesser earnings are also able to live in Abu Dhabi and contribute towards its economic development. Low earning people are also an important part of the economic infrastructure and we may see similar changes adopted by other states in UAE as well. The question of living conditions for low income people in UAE has also been answered well through the announcement of houses for lower income people which would considerably impact their living conditions while working here.

Earlier a deal financed by the emirate’s Urban Planning Council had been signed with Sorouh Real Estate for making affordable livings.

Real estate experts believe that governments should support the cash starved developers in increasing affordable housing as that is still in good demand and vital for future development of UAE.