As calls for affordable housing have been gaining strength in Dubai, many real estate developers have taken the plunge into the untapped real estate segment. The latest in the series is luxury developer Sobha Group, a name traditionally been associated with premium developments.
Although the developer has only announced plans of developing an affordable housing project in Dubai, it has pledged revealing all details in the third quarter of the current year. Looks like Sobha is carefully weighing its options. Another interesting twist in this story is the land of the project, which would not be from the existing portfolio of the company and needs to be acquired.
While refraining from revealing the locations of the project, Sobha Chairman PNC Menon said Dubai’s property market was ready for the next level of products and low to mid-tier housing projects were becoming a top priority for all developers.
Regardless of developing affordable property units in Dubai, the developer said it would not compromise on quality. Sobha said there were various methods which a developer could utilise to develop residential projects designed for the low end of the market while maintaining quality.
Land prices in the emirate aren’t as economical as they were a couple of years ago. Experts believe new entrants in the affordable segment may face problems, especially if they have to buy new land plots in areas proximate to the city centre. Only developers already owning land plots around popular affordable localities secure the best chance of making good profits in the short-term.
Other than that, developers can also buy stalled or cancelled property projects from the government and start developing affordable, yet quality projects there. Dubai is in a dire need of affordable housing as its expat population is rising steadily. Experts believe the next two years will be dedicated to the affordable segment, so are you ready to become a home-owner in Dubai? We can tell you about some developers (MAG Group and Danube Group) offering really easy instalment plans here.