Dubai companies investing in property for staff to beat vast rent increases
DUBAI // Companies are investing in property in Dubai to provide their employees with accommodation instead of increasing housing allowances, experts say.
Estate agents, experts and company managers said that developing, buying or renting residences would allow them to retain important personnel and cope with the large rent increases seen in the emirate in the past year.
The move also allows companies to gather staff at one location, simplifying transport requirements.
Jamal Abdullah Lootah, the chief executive of facilities management solutions firm Imdaad, told The National’s sister paper, Al Ittihad, that the company had earmarked Dh100 million to build a housing complex.
The company will receive the first phase, which will be able to accommodate 1,000 employees, in January next year. The remainder of the of the project will be ready later in the year, and will eventually accommodate 3,000 staff.
Imdaad is also going to buy completed residential properties for middle and senior-level management staff, in a move hoped to enhance the company’s capacity to attract technical personnel and retain staff.
Mr Lootah said direct and indirect returns accrued through investments in housing for staff would provide the company and its employees with protection from the impact of increasing rents.
Emirates Airline is developing five residential towers, which will be allocated to crew members, as well as 570 villas.
Muhannad Al Wadiya, an administration manager at Harbour Real Estate in Dubai, said he had noticed a trend of companies investing in property, especially since the unprecedented average increase in rental prices of 25 per cent over the past 12 months.
Published: May 29, 2014 04:00 AM