Developers eye end-users
Earlier this year, it was predicted that the Dubai real estate market could sustain growth by offering more affordable housing options. Now, it appears developers are doing just that.
In this past week, Dubai developer Nshama made headlines with its new project, Town Square. Head by former Emaar CEO Fred Durie, the developer has placed its eyes firmly on a niche offering: affordable housing.
"We are targeting middle income people earning around AED20-35,000 a month. These are the people who renting right now and they can't afford to buy - this opens up an entirely new market segment," said Durie. Town Square is spread across 750 acres and will feature over 3,000 townhouses and 18,000 apartments in addition to substantial retail, hospitality and commercial space.
"Property markets across the world are driven by 'end-users' or 'middle class,'" Simon Gray, managing director, Chestertons MENA, had said earlier. "UAE can also benefit tremendously by introducing attractive propositions for this segment as majority of the residents can look at owning a property and create a sustainable market proposition."
While developers may be shifting their attention to the end-users in the market, the city continues to attract international investors as a result of its premium offerings. In fact, Dubai still ranks among the top 10 most important cities for ultra-high-net-worth individuals.
Market Insight is aimed at examining the emirate's dynamic market and forecasting industry trends. The changing outlook on the part of developers is essential for moving forward. As Durie pointed out, this kind of housing is something that Dubai needs for its 2021 vision and for Expo 2020. Not only that, but by targeting end-users, developers would reduce speculator interest, promoting sustainable growth in the city.