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Affordable Housing in Dubai: Ensuring Equitable Access in the Real Estate Market

Affordable Housing in Dubai

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Affordable Housing in Dubai

Dubai’s real estate market has been making headlines recently with a significant uptick in luxury off-plan property launches. While this may seem like a boon for the city, experts are warning that this trend is overshadowing the launches in the more affordable mid-market segment. The growing focus on wealthy buyers in Dubai could lead to supply imbalances and raise concerns about equitable access to housing.

affordable housing in dubai

Luxury vs. Mid-Market: Striking a Balance

  • Dubai’s real estate market has seen a surge in luxury off-plan launches due to extensive advertising campaigns. This surge in uber-luxury projects has garnered much attention but raised questions about the neglect of the affordable mid-market segment.
  • Historically, around 64% of property purchases in Dubai were valued just under AED 3 million. This means that a significant portion of buyers is looking for more affordable options, especially given the recent hike in rental prices.
  • The problem is that most Dubai developers concentrate on either the luxury or affordable markets, causing an uneven supply that can’t meet the needs of the wider population.

Government's Role in Balancing Supply and Demand

  • To address this issue, the Dubai government established a Higher Committee for Real Estate in 2019. The committee’s primary aim is to ensure equilibrium between available property stock and the requirements of the population.
  • Sheikh Mohammed bin Mohammed, along with senior industry executives, leads this committee. Their vision was to introduce an innovative quality project that aligns with the expansion of the city’s economy to protect it from economic imbalances.
  • This becomes even more critical when we look at Dubai’s 2040 Vision, which projects significant population growth, from 3.5 million to 5.5 million by 2030.

Shifting Buyer Demand in Dubai

  • Dubai residents are increasingly looking for family-friendly neighborhoods, such as Arabian Ranches and Talal Al Ghaf. This shift in demand is driving the need for gated communities and townhouses.
  • However, the market currently faces a shortage of these housing options, leading to higher living costs and rental rates.
  • It’s crucial for Dubai to maintain its reputation as an affordable place for its growing population, as high rental rates can discourage people from choosing the city as their home.

Developments in the Affordable Segment

  • While luxury branded projects dominate the real estate listings in prime locations, data shows that the majority of buyers traditionally seek more modest budgets.
  • Some experts suggest that it’s vital to address this imbalance, as it risks distorting Dubai’s vision of inclusivity.
  • On a positive note, there are affordable off-plan projects in areas like JVC, Motor City, Sports City, Arjan, and Al Furjan. These properties are priced starting at AED 400,000, making homeownership more accessible.

Limited Supply of Ready Properties Fuels Off-Plan Boom

  • A notable shift has been observed in buyer preferences, with a growing interest in ready properties since the pandemic. This has led to limited supply across all market segments.
  • The off-plan segment, valued at approximately AED 100 billion, has gained traction, with new launches happening almost weekly.
  • Investors are particularly interested in off-plan properties due to the potential for discounted prices and capital appreciation upon property completion.

Addressing Affordability

  • While off-plan investments offer various advantages, affordability remains a pressing concern for many prospective homebuyers in Dubai.
  • As part of addressing this issue, a refined approach was suggested. In which one strategy could involve the government implementing an affordable housing policy, similar to the approach seen in other countries.
  • Additionally, introducing higher loan-to-value (LTV) mortgages, such as 85%, for buyers in the mid-market segment can assist them in overcoming substantial down payments and make homeownership more feasible for those with lower incomes.


In conclusion, while the luxury real estate market in Dubai is booming, it’s essential to maintain a balance by addressing the demand for affordable housing. The Dubai government’s efforts, along with developers offering accessible options, are steps in the right direction to ensure that everyone has a fair chance to own property in this dynamic city.


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How much is affordable housing in Dubai?

Two-bedroom villas and townhouses typically go for AED97,500 in rent per year while three-bedrooms go for AED120,000. 

What house can I afford in Dubai?

You can use the Mortgage Finder Affordability Calculator to work this out. For a property purchase price under AED 5million the maximum loan-to-value (LTV) for an expat is 80% and for a UAE national is 85%. For properties over AED 5million, this decreases to 70% LTV for expats and to 75% for UAE nationals.

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