Abu Dhabi to provide rental homes from Dh700 a month

Affordable homes initiative for fixed income earners

ABU DHABI 6 August 2017: The Department of Municipal Affairs and Transport at the Abu Dhabi City Municipality (ADM), has announced an initiative targeting fixed-income groups to meet their needs of residential units.

There are two targeted categories of occupants the first is the low-income segment earning a monthly income of Dh4,000 to Dh6,000 for whom the rent will range from Dh1,400 to Dh2,100 per month. The second category is bachelors with fixed incomes. For those earning a monthly income of Dh2,000 to Dh4,000, the rental value will be Dh700 to 1,400 per month, said Wam.

The municipality has set three eligibility conditions. The first criterion is planning. The building has to overlook the main road. It is permissible to convert all floors into residential units, except the ground floor. The second criterion is design. The minimum area must be 26 square metres for a studio, 40 square metres for a one-bedroom flat, 60 square metres for a two-bedroom flat, and 80 square metres for a three-bedroom flat.

The third criterion is operational standards. Priority will be given to those working in entities and commercial organisations within the same sector. Units cannot be rented to individuals directly.


At the same time, it offers an investment opportunity to commercial property developers in the city. It enables individual landlords, developers and investors to construct new buildings or convert their existing properties to residential units befitting the financial means of fixed-income earners.

The move stems from the municipality’s keenness to foster co-operative relationships and partnerships with the private sector towards providing suitable accommodation for all community segments, especially fixed-income earners. It also illustrates their commitment to social responsibility.

Affordable Accommodation

The initiative aims to provide high-quality and affordable accommodations for low-income groups at rents ranging from Dh917 to Dh1,563 per month. This will bridge the gap between supply and demand, offer property owners a return on investment of between 21 and 28 per cent a year, save about Dh4 million in total building costs, and reduce the construction period by as much as eight months.

In this context, the ADM held a workshop, which highlighted the initiative covering the investment opportunities on offer to property owners and developers of commercial buildings. It enables them to review and identify the means of generating revenues and ensure the optimal use of commercial buildings dedicated to fixed-income groups.

Attendees of the workshop included Musabbah Mubarak Al Murar, Acting General Manager of the ADM, several executive directors of the municipality, strategic partners including the Urban Planning Council, as well as developers and owners of real estate and investment companies.

Investment Opportunity

“This initiative aims to provide proper and legal options of residential units befitting the financial means of low-income individuals and at the same time open an investment opportunity to owners of commercial properties in Abu Dhabi. The initiative is in line with the vision of the Abu Dhabi government aimed to provide all means of decent and stable living for all spectrums of the community. It will also offer support to fixed-income groups by ensuring them accommodation at affordable rents that is commensurate with their annual income levels,” Al Murar said.

“The Abu Dhabi City Municipality is pleased to play a leading role in rolling out key strategic initiatives capable of cementing the values of sustainability and community service. This trend is gathering momentum, thanks to the positive co-operation of property owners and developers. It cements the partnership relationship and co-operative spirit towards realising the common interests, which at the end of the day serve the interest of community members and provide a stable and decent living to all residents,” he added.

By Sheena Amos