Abu Dhabi launches affordable housing development as demand soars

Rents rose by an average of 20 per cent in 2024

The Value Housing Programme aims to 'create vibrant and thriving neighbourhoods that set new benchmarks for quality and innovation'. Photo: Abu Dhabi DMT

Abu Dhabi has launched an affordable housing programme aimed at meeting the demand for real estate amid efforts to boost living standards in the emirate.

The Value Housing Programme is a collaboration between the emirate's Department of Municipalities and Transport and Sdeira Group, formerly known as Kezad Communities, and Central Holding Group, the DMT said in a statement on Monday. It signed two separate preliminary agreements with the two companies.

The project, which will comprise "high-quality" units, will be introduced in phases. However, the DMT did not disclose the value of the development, the number of units to be made available, or a timeline for the initiative.

The agreements "aim to create vibrant and thriving neighbourhoods that would set new benchmarks for quality and innovation", said Mohamed Al Shorafa, chairman of the DMT.

“These partnerships underscore our dedication to delivering housing solutions that adhere to our principles of inclusivity and sustainability. They are a crucial step in addressing the growing demand for housing in the emirate, while improving living standards and providing avenues for everyone to access housing that enhances their well-being."

The UAE’s property market continues to perform strongly owing to government initiatives such as residency permits for retired people and remote workers, as well as the expansion of the 10-year golden visa programme and overall growth in the country's economy amid diversification efforts.

Abu Dhabi recorded real estate deals valued at Dh96.2 billion ($26.19 billion) in 2024. The total value of deals for the year rose by more than 10 per cent on an annual basis, while the number of transactions increased by about 24 per cent to 28,249, the Abu Dhabi Real Estate Centre said in January.

Sales transactions for the period were 16,735, with a total value of Dh58.5 billion, and mortgage transactions reached 11,514, with a total value of Dh37.7 billion.

Residential sale prices and rents in the UAE capital rose by 11 per cent and 20 per cent, respectively, in 2024, amid higher demand and a supply shortage in the emirate, Cushman & Wakefield Core said in a report.

"The department is committed to working closely with investors, developers and partners to identify new opportunities and drive the Value Housing Programme forward," the DMT said. "By fostering strategic partnerships, it seeks to drive sustained growth, reshape the real estate sector and ensure the versatility of Abu Dhabi's housing market by offering diverse options for all segments of society."

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