While Dubai has majorly been branded as luxury destination there is a huge Demand of Affordable housing with expatriates living here and earning a mid income.  The focus of Dubai developers has mainly been on the luxury and the ultra luxury real estate since the country started selling freehold property, this segment has been a preference because the margins are so much higher than affordable housing. In the recent years there was a change in market dynamics that led to a paradigm shift towards affordable projects.

Affordable housing projects have the potential to bring a major share of the UAE expatriates into the property scene as they are paying high rents that can easily match a monthly mortgage installment for a long tenure loan. Investors are also keen on having affordable properties in their portfolio as the rental yields are high and the demand is expected to never die. Rental returns in Dubai are high compared to other cities and this is a major attraction for buy to let investors. Some communities even offer  up to 9 percent returns as demand is high in these areas.

Investment in Dubai real estate sector is contributed by more than 200 nationalities as the market mainly depends on foreign investments. Creating developments within buying reach of the existing residents will reduce the dependability on foreign investors and will keep demand active as more people will be able to buy instead of renting.

Some developers have taken advantage by realizing the potential of the untapped affordable segment are offering apartments at competitive prices and long term payment plans that run years after handover. Making it possible for the mid income earners to think of buying instead of renting. Some of these extended plans are already creating a buzz in the market.

With the Expo 2020 just around the corner, there is a huge influx of workforce expected to enter the UAE to cater the infrastructure projects required for the event. This includes people who’ll be renting properties, thus adding to the demand for residential properties. This is a right time for developers to concentrate on the affordable segment that targets expatriates with a mid income, capable of buying properties with the help of a mortgage. Interest rates in the UAE are lower compared to India, Pakistan and other countries and high net worth individuals from these nationalities have massively contributed to investment in Dubai real estate. Now is the time when the mid- income expatriates from these countries need to enter the property market as they already have been living here and are aware of the advantages of being a property owner and other benefits UAE offers its residents.

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