Developers breaking ground on affordable projects

Analysts expect to see more launches coming up in the next 12 months targeting the middle market segment. Dubai's developers are starting to focus on tackling the issue of affordable housing, according to a Gulf News report. Availability of land is definitely not an issue, according to industry sources. “The take up of plots in the residential district of Dubai World Central has been strong with sub-developers taking a long-term view on the strategic potential of the area,” said Adam Wisher, head of Development Advisory and Real Estate Research at Cavendish Maxwell, the property services firm. “There have been a few examples of developers breaking ground on residential development in this area, but those who have bought land are incentivised to progress under their purchase agreements. “As such, you can expect to see more launches coming up in the next 12 months targeting the middle market segment. There are other locations as well where an affordable housing community can work just as well. “Within a 20-25 kilometre radius of the new airport, there are still under-developed areas where affordable housing projects can be taken up, to the benefit of both developers as well as buyers,” said Talal Moafaq Al Gaddah, CEO of MAG Property Development llc. “At such locations, and Dubai World Central is the possibility, developers can manage to structure their costs on per square foot basis and which leaves enough profit margins once the properties are sold. But developers should not try and cut corners in doing so - that means still having decent-sized front and back areas to the homes, gardens, community features, etc.”