Year 2015 is fast becoming the year of affordable housing, with one more Dubai developer entering the property arena with a product matching the market need.
In an emailed brochure to clients, MAG Property Development revealed plans to build ‘MAG 5 Boulevard’, an integrated residential community in Dubai World Central residential district, adjacent to the Expo 2020 venue.
The development will have 13 ground plus six-storey buildings, housing 1118 residential units. Prices for studio units start from Dh380,000, one bed units from Dh499,000 and two-bed apartments from 799,000 and three bed units with private garden from 1.399 million.
“Apartment prices start from Dh6200 per month,” the brochure states, adding, buyers will be offered five year developer financing at zero per cent interest.
The project is slated for completion in 2018, the brochure states.
Emirates 24|7 reported on Wednesday how developers were waiving off four per cent Dubai Land Department registration fees, offering interest free monthly installments and payment options post handover of the units.
Mashreq, a top bank in the UAE, said in In its ‘Wealth Gauge’ report in March that real estate development with innovative payment plan was the need of the hour and back-loaded schemes especially for off-plan properties whereby developers demand chunk of the payments to be made only after the unit is handed over were in demand.
In March 2015, Emirates 24|7 reported that Dubai Municipality (DM) had allocated over 100 hectares of land for affordable housing in Muhaisnah 4, Al Qouz 3 and 4, mostly to meet the demand for dwellings for people earning between Dh3,000 and Dh10,000 per month.
Khalid bin Kalban, Chief Executive Officer, Dubai Investments, a Dubai stock exchange-listed company, also told this website that affordable housing market was going to outshine luxury market segment in 2016.
“I think 2016 onwards there will definitely be a pick-up in affordable housing because of the projects being undertaken by the government such as the Al Maktoum International Airport, Expo 2020 venue development and theme parks in Jebel Ali area,” he said.
Dubai is expected to create over 277,000 new jobs in the run up to the Expo 2020 and may witness an undersupply situation rather than an oversupply.
Moody’s Investors Service, a global ratings agency, has said the government spending on infrastructure and encouraging more foreign investments in various sectors will support the real estate market over the next five years.
The government has announced the new Dubai Metro Route 2020 project – an extension of the Metro’s Red Line from Nakheel Harbour and Tower Metro station to the Expo 2020 site.