The majority of the real-estate developers in Dubai, UAE, have now started shifting their focus on end-users or middle-income earners by providing them with affordable housing options, said a leading developer.

Dubai Municipality’s move to introduce mandatory affordable housing quotas in all new residential developments would trigger more sustainable growth in the coming period, stated Hafeez Abdullah, the chairman of The H Holding Enterprise, citing the Dubai Residential Market Overview report by global real estate services firm JLL.

The municipality has allocated over 100 hectares of land for affordable housing across various locations in Dubai, targeting buyers and tenants with monthly income of between Dh3,000 and Dh10,000 ($816 and $2722), he added.

The JLL report revealed that the first quarter of the year continued to see subdued activity in Dubai’s real estate market. While residential rentals remained relatively flat, sales saw a marginal decline across apartments and villas.

“It is commendable how Dubai government is supporting stability in the real-estate sector. The existence of different types of developers in Dubai makes it a unique global market. We set up a real-estate arm early this year, and our operations are progressing better than expected,” said Abdullah.

He pointed out that the JLL was expecting more Grade A office space to enter the market with the flight to quality remaining the trend in Dubai’s office sector.

"Q1 saw the delivery of approximately 730 residential units across Dubai. An additional 22,000 units are expected to enter the market by the end of 2015," stated Abdullah, citing the report.

Another 13,000 units would be added in 2016 and 10,000 units in 2017, he added.-TradeArabia News Service