Abu Dhabi has announced that it will make affordable homes for middle income group. How will this impact the overall developmental plans of other countries in GCC? What reaction can we expect from Dubai? If the trend sets in, what economic rewards can we reap from these kind of housing schemes in other UAE states as well? And lastly, one important regulation has been added that all developments greater than 75,000 square metres excluding areas for villas and townhouses will have to include affordable homes in their project plans. Is this the kind of planned developmental structure that we were talking about? And what impact this new law will have on UAE's real estate market and real estate development plans in general?
Affordable housing scheme is really a great step and it will provide a sense of ease to those who have low income in Abu Dhabi. The new regulation will enhance the attraction of Abu Dhabi for the middle and lower class people which is eventually in the benefit of Abu Dhabi.
I am not sure how far it will impact the other GCC country's developmental plans but it will make them think to come up with similar projects in future to enhance their attractiveness and to stay in competition with Abu Dhabi.
Indeed it’s a valuable step for boosting up Abu Dhabi financial sector. Due to economic pressures and high inflation, middle income citizens were facing much problems in stabilizing their living.
So, shifting focus to middle and lower income citizens is a huge step. As heard in the news that capital has been set for 15000 new homes for such citizen’s category and rents would be as low as AED 25000 per year.
Future of UAE is much dependent on such developments and it will catch the eyes of foreign investors.
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