Federal Government Low-Cost Housing Provision

The United Arab Emirates (UAE) has undergone a remarkable transformation from being one of the poorest countries in the world to a global economic powerhouse, largely due to the discovery of oil in the 1960s. This newfound wealth has enabled the UAE to implement various welfare programs aimed at improving the living conditions of its citizens. One such program is the low-cost housing initiative, which has been a cornerstone of the government’s efforts to provide affordable accommodation to those in need. This paper explores the implications of the free low-cost housing program on the housing conditions of its occupants and potential beneficiaries, and examines whether the program aligns with the housing preferences of the target group.

Between 1973 and 1992, the standard of low-cost housing in the UAE underwent significant changes. The built-up area of these houses increased fourfold, while the construction cost multiplied by ten. By 1994, the cost of a typical low-cost house had risen to Dh 450,900 ($121,800). This substantial increase in cost and size reflects the UAE government’s commitment to providing better living conditions for its citizens. However, it also highlights the need to balance affordability with quality and sustainability.

Today, the UAE offers a variety of affordable housing options across different emirates. For instance, in Dubai, neighborhoods like International City, Discovery Gardens, and Jumeirah Village Circle are known for their affordable apartments and townhouses. These areas provide modern amenities such as swimming pools, gyms, and community parks, ensuring that residents enjoy a high quality of life without breaking the bank. The average price for a one-bedroom apartment in International City, for example, can be as low as AED 350,000 ($95,290), making it an attractive option for low and middle-income earners.

Despite the government’s efforts, the free low-cost housing program faces several challenges. The high demand relative to supply means that only a few can access these housing services. Moreover, the program has been criticized for providing large improvements for those who may not need government support or only require partial assistance. This has led to a waste of resources for both the allocatees and the government, resulting in the deterioration of the low-cost housing stock and part of the existing housing stock. Additionally, the free provision does not offer a sustainable source of funds, which is crucial for the long-term maintenance and improvement of housing conditions.

The free low-cost housing program does not always match the housing preferences of the target group. Research suggests that housing provision based on the target group’s preferences would result in more support for a greater number of citizens. This approach would also change the role of citizens from being passive recipients to active participants in the housing process. For the government, it would mean shifting from a controlling role over all housing processes to being one actor among many, providing a sustainable source of funds and encouraging people to improve their own housing resources. However, aligning housing provisions with the target group’s preferences may face official resistance.

The low-cost housing program in the UAE has made significant strides in improving the living conditions of its citizens. However, it faces challenges that need to be addressed to ensure its long-term sustainability and effectiveness. By understanding the housing preferences of the target group and providing more sustainable funding mechanisms, the government can enhance the program’s impact and reach. As the UAE continues to grow and develop, the need for affordable and sustainable housing solutions remains paramount.