Housing in Abu Dhabi to cost only Dhs700 a month!
Housing units for low income earners will be introduced in Abu Dhabi, authorities announced on Saturday.
With rents as low as Dhs700, the housing units aim to solve the problem of congested houses for bachelors and to prevent illegal partitions in villas.
The Department of Municipal Affairs and Transport - Abu Dhabi City Municipality (ADM) announced initiative, which targets to meet te residential requirements of fixed income groups.
Officials said the initiative also offers an investment opportunity for commercial property developers in the city, reports Khaleej Times, as it enables individual landlords, developers and investors to construct new buildings or convert their existing properties to residential units.
Existing properties will be modified and modifications include redesigning and revising the interiors. By giving private investors the opportunity to provide this particular type of housing, the Ministry aims to foster cooperative relationships and partnerships with the private sector.
It also illustrates the municipality's commitment to its social responsibility to enhance the means of providing happiness to residents of Abu Dhabi and fulfill sustainability standards.
"The initiative aims to provide high-quality and affordable accommodations for low-income groups at rents ranging from Dh917 to Dh1,563 per month. Thus, it will bridge the gap between supply and demand; offer property owners a Return On Investment of about 21-28 percent p.a., save about four million dirhams in the total building cost, and reduce the construction period by as much as eight months," said a municipal statement.
Who is this housing for?
There are two targeted categories of occupants; the first category is the low-income segment earning a monthly income of Dhs4,000 to Dhs6,000, and their rent will range from Dhs1,400 to Dhs2,100 per month. So individuals with an annual income ranging from Dh48,000 to Dh72,000 will be offered annual rent ranging from Dhs16,800 to Dhs25,000.
The second category is bachelors with fixed incomes. The rental value will be Dhs700 to Dhs1,400 per month for those earning a monthly income of Dh2,000 to Dh4,000. Their annual rent will vary from Dhs8,400 to Dhs16,800 for those whose annual income is in the range of Dh24,000 to Dh48,000.
The rental value is calculated at a rate not exceeding 35 percent of the individual's total income; with consideration given to the number of occupants, said municipal officials.
What a fantastic initiative by the Abu Dhabi government!