Work for the AD government or one of its subsidiaries and live in Dubai?
#1
You read these things?
Thread Starter
Joined: Jun 2010
Posts: 1,261
Work for the AD government or one of its subsidiaries and live in Dubai?
Bad news if you have currently use housing allowance...
Another cynical attempt to stop AD house prices dropping to a reasonable level?
Originally Posted by Arabian Business
Abu Dhabi is pressing its public sector employees who reside outside the emirate to relocate within its borders, a policy which analysts say aims to address heavy oversupply in its real estate market.
"Employees residing outside the emirate will not be eligible for the housing allowance" provided to workers in state institutions, the government said in a circular dated September 12 and seen by Reuters.
The policy takes aim at people, believed to number many thousands, who commute to work in oil-rich Abu Dhabi while living in the neighbouring emirate of Dubai because of lower rents there or a lifestyle which they see as more comfortable.
The new rule, which will take effect after a year, will apply to citizens of the UAE as well as foreigners who are working in Abu Dhabi for the government and all its wholly owned entities and companies, the circular said.
It said employees should live in Abu Dhabi "to avoid traffic and road accidents", an apparent reference to the risks of commuting on the 130km highway through the desert between Abu Dhabi and Dubai, which is packed with cars at rush hour.
However, analysts said the policy appeared designed to help absorb a large supply of new high-end homes that is set to enter the market in Abu Dhabi this year.
Property prices in the emirate have tumbled about 50 percent since the global financial crisis hit the market several years ago, analysts estimate, and the new supply threatens to undermine them further.
"Many new units have come up in Abu Dhabi, reaching the peak of its development cycle. The move is to create new demand and make sure the vacancy rates don't reach high levels," said Matthew Green, research head at consultants C.B. Richard Ellis.
David Dudley, director of operations for the Middle East and North Africa at Jones Lang LaSalle, said: "This is a positive move for Abu Dhabi's property market that will help create demand for housing where there's oversupply."
Analysts were unable to provide a precise number for Abu Dhabi government employees living outside the emirate, but two years ago, the number was roughly 20,000, one analyst estimated.
Government officials in Abu Dhabi were not immediately available to comment on the policy. The government is a major employer in Abu Dhabi and several state-owned companies, such as Etihad Airways, already had such a policy in place or were considering whether to adopt it.
Earlier this year the Abu Dhabi government said it was considering a proposal for a state-backed merger of the emirate's biggest two property developers, Aldar Properties and Sorouh Real Estate, after they were hit hard by falling property prices.
Abu Dhabi, the capital of the UAE, had a population of nearly 2 million in 2010, according to the Abu Dhabi Statistics Centre; most residents were workers from other countries.
"Employees residing outside the emirate will not be eligible for the housing allowance" provided to workers in state institutions, the government said in a circular dated September 12 and seen by Reuters.
The policy takes aim at people, believed to number many thousands, who commute to work in oil-rich Abu Dhabi while living in the neighbouring emirate of Dubai because of lower rents there or a lifestyle which they see as more comfortable.
The new rule, which will take effect after a year, will apply to citizens of the UAE as well as foreigners who are working in Abu Dhabi for the government and all its wholly owned entities and companies, the circular said.
It said employees should live in Abu Dhabi "to avoid traffic and road accidents", an apparent reference to the risks of commuting on the 130km highway through the desert between Abu Dhabi and Dubai, which is packed with cars at rush hour.
However, analysts said the policy appeared designed to help absorb a large supply of new high-end homes that is set to enter the market in Abu Dhabi this year.
Property prices in the emirate have tumbled about 50 percent since the global financial crisis hit the market several years ago, analysts estimate, and the new supply threatens to undermine them further.
"Many new units have come up in Abu Dhabi, reaching the peak of its development cycle. The move is to create new demand and make sure the vacancy rates don't reach high levels," said Matthew Green, research head at consultants C.B. Richard Ellis.
David Dudley, director of operations for the Middle East and North Africa at Jones Lang LaSalle, said: "This is a positive move for Abu Dhabi's property market that will help create demand for housing where there's oversupply."
Analysts were unable to provide a precise number for Abu Dhabi government employees living outside the emirate, but two years ago, the number was roughly 20,000, one analyst estimated.
Government officials in Abu Dhabi were not immediately available to comment on the policy. The government is a major employer in Abu Dhabi and several state-owned companies, such as Etihad Airways, already had such a policy in place or were considering whether to adopt it.
Earlier this year the Abu Dhabi government said it was considering a proposal for a state-backed merger of the emirate's biggest two property developers, Aldar Properties and Sorouh Real Estate, after they were hit hard by falling property prices.
Abu Dhabi, the capital of the UAE, had a population of nearly 2 million in 2010, according to the Abu Dhabi Statistics Centre; most residents were workers from other countries.
#2
Re: Work for the AD government or one of its subsidiaries and live in Dubai?
would reduce the fossil fuel burnt on that bloody road every day.
#3
Re: Work for the AD government or one of its subsidiaries and live in Dubai?
If the number of inter-emirate commuters is as high as 20,000 a day, and most are going from Dubai to AD, then this policy could create a considerable blip in the supply and demand for housing in Dubai.
#4
Re: Work for the AD government or one of its subsidiaries and live in Dubai?
http://gulfnews.com/news/gulf/uae/ge...ital-1.1076302
According to Gulf News you would actually have to reside there, not just to get housing paid for...
According to Gulf News you would actually have to reside there, not just to get housing paid for...
#5
Re: Work for the AD government or one of its subsidiaries and live in Dubai?
"Property prices in the emirate have tumbled about 50 percent since the global financial crisis hit the market several years ago, analysts estimate, and the new supply threatens to undermine them further."
Bollocks they have. My rent has not gone down in the 3 years I've been here.
My inside source tells me that the original concern was one of safety and reducing traffic accidents. Not sure if that's the "internal message" and the housing support is the real objective, but I've yet to see any sign of distress in the housing market.
Bollocks they have. My rent has not gone down in the 3 years I've been here.
My inside source tells me that the original concern was one of safety and reducing traffic accidents. Not sure if that's the "internal message" and the housing support is the real objective, but I've yet to see any sign of distress in the housing market.
#6
Re: Work for the AD government or one of its subsidiaries and live in Dubai?
"Property prices in the emirate have tumbled about 50 percent since the global financial crisis hit the market several years ago, analysts estimate, and the new supply threatens to undermine them further."
Bollocks they have. My rent has not gone down in the 3 years I've been here.
My inside source tells me that the original concern was one of safety and reducing traffic accidents. Not sure if that's the "internal message" and the housing support is the real objective, but I've yet to see any sign of distress in the housing market.
Bollocks they have. My rent has not gone down in the 3 years I've been here.
My inside source tells me that the original concern was one of safety and reducing traffic accidents. Not sure if that's the "internal message" and the housing support is the real objective, but I've yet to see any sign of distress in the housing market.
#7
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Joined: Jan 2011
Location: Dubai
Posts: 3,467
Re: Work for the AD government or one of its subsidiaries and live in Dubai?
ACE! Cheaper rents in Dubai.
#8
Re: Work for the AD government or one of its subsidiaries and live in Dubai?
It also means that the earners keep the vast majority of their cash in Abu Dhabi, which benefits the emirates' economy and makes the Sheikhs and property owners even richer.
For once (other than the fact it's removing freedom of choice) I think it's a decent move for the AD Emeratis.
For once (other than the fact it's removing freedom of choice) I think it's a decent move for the AD Emeratis.
#9
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Joined: Jun 2008
Location: Abu Dhabi by body and Sydney by soul
Posts: 1,841
Re: Work for the AD government or one of its subsidiaries and live in Dubai?
Our place is about 25% higher than it was in spring 2008 but at least 50% less what it was worth by 2009. Crazy days.
Luckily, the company paid a flat fee for the first three years, though I don't know what they've done since. Only non-company housing on this compound provide any transparency.
Luckily, the company paid a flat fee for the first three years, though I don't know what they've done since. Only non-company housing on this compound provide any transparency.