Stampede For Abu Dhabi Homes As Deadline Nears

Realtors doubt that enough properties will hit the market in Abu Dhabi to meet a government deadline that public sector workers set up home in the emirate.

They report a stampede to find the best homes is under way as thousands of workers have to relocate from nearby Dubai to Abu Dhabi to meet a government decree.

Property firms are expecting around 5,000 flats and 4,000 villas to complete during the next year – but consider even that number of homes will not meet demand.

“People looking for a new home are flooding us with inquiries,” Andrew Covill, of LLJ Property.

“Many want to rent and some want to buy. As the deadline draws ever closer, people need a home in Abu Dhabi and they are looking for quality. Many will be disappointed.”

Affordable housing

The popular neighbourhoods for home seekers are Al Raha Beach, Reem Island and Al Reef.

“Airport workers and Etihad crew are keen on these neighbourhoods as they are close to the airport,” he said. “Saadiyat Island is also extremely popular as it has the only golf resort in the city.

“The problem with Abu Dhabi is affordable housing is in short supply and this problem will take some time to resolve with such a huge influx of new residents and their families.”

The property squeeze was created by the government ordering public workers to give up their homes in Dubai in favour of moving to Abu Dhabi.

For many expats, the choice has been to live in Dubai, which has better shops, sports and entertainment than Abu Dhabi, as well as more luxury property for sale and rent.

Housing allowance

Dubai is a two-hour commute from Abu Dhabi, so each working day tends to see a rush hour dash that empties Abu Dhabi as workers head home to Dubai.

One of the issues was the Abu Dhabi government felt Dubai was growing richer on salaries paid to expats in the emirate as they were earned in Abu Dhabi but spent in Dubai.

The emirate has also undergone a massive infrastructure improvement to cope with the expected new arrivals. The government has built new roads, housing, schools and hospitals for the expanding population.

Public sector workers have until May 2014 to comply with the deadline to allow them to give notice on rent agreements without penalty.

However, those who do not move face losing their housing allowance, which makes up a large proportion of their pay.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest article

Struggling Forex Broker Bought Flats With Company Funds

A forex broker whose company was approaching financial meltdown switched £1.05 million from a business account to buy two apartments in Dubai in a...

Stock Markets Slump To Worst Quarter In 37 Years

Stock markets slumped to record losses in the first three mnths of the year due to fears over how coronavirus impacts the world economy...

Operation Airlift Underway For Brits Stranded Abroad

The British government is working with partner airlines to bring thousands of stranded travellers back to the UK. Foreign Secretary Dominic Raab has set aside...

Expat Landlords Get Buy To Let Mortgage Aid

The financial pain of coronavirus uncertainty for buy to let landlords has been eased by the housing minister. Secretary for Housing Robert Jenrick is extending...

Financial Package On The Way For Self-Employed

Financial support is coming for freelance and self-employed expats who pay their taxes in the UK, Prime Minister Boris Johnson has promised. In his last...