Affordable housing to be available in Abu Dhabi soon

Housing is soon expected to become more affordable in Abu Dhabi owing to recent reductions in construction costs coupled with an expected supply of a large number of units to the capital's housing market, top executives from leading real estate developers said on Monday at a Cityscape Abu Dhabi session on affordable housing.

Jonathan Herps, advisor to SBK Holding and the Private Office of Sheikh Sultan Bin Khalifa Al Nahyan, said the housing market in Abu Dhabi would change considerably in the next 12 months and middle-income earners in the capital would soon see a reduction in the shortages of affordable housing.

"The Abu Dhabi government has already met very well the housing needs of Emiratis. The availability of mid-range rental units for expatriates will be dependent on how quickly developers adapt to the smaller margins in this particular segment of the housing market," Herps said.

Senior executives from master-developers Aldar and Surouh also highlighted their affordable housing projects at the session, and said a key challenge was the current unavailability of investment area land at affordable rates for developers.

The shortage of mid-range housing for rent in the capital currently forces thousands of people to commute from Dubai daily, where rents are much more affordable for middle-income earners.