When people talk about real estate in Dubai, it is easy to ignore the staff accommodation market. However, because of the continuous massive economic growth of Dubai, this market has seen a significant increase in demand.
Most people living in staff accommodation are there temporarily and will only stay up until their project is completed. Usually, staff accommodation comes with minimum features and facilities, making it an affordable option for many workers in Dubai.
According to statistics, people from the construction sector use staff accommodation the most. With more than 14,000 buildings being constructed in Dubai today, this is not surprising that a lot of laborers and professionals are seeking a good place to stay in.
This trend is expected to continue as Dubai real estate market continues to thrive. To give you an idea, ten of the biggest construction projects in Dubai have a combined value of $50.5 billion.
For this reason, staff accommodation is forecasted to grow. Over the next three years, it is expected that more than 65,000 units will be added to the staff accommodation inventory just to meet the demand of most workers.
With the increase in demand, it is not surprising to see that commercial rent in Dubai for staff accommodation have increased. For instance, a single staff accommodation bed is only priced at around Dh200 per person in 2009. However, in 2014, the average rate doubled to Dh245.
Staff accommodation growth is especially noted in Dubai Investment Park as it is close to huge construction projects. Moreover, places near Mohammed Bin Rashid City are expected to see more staff accommodation growth as Dubai Holding and Emaar Properties develops The Lagoons project.
Aside from the construction sector, staff accommodation is also needed in the hotel and retail industry. The government estimates that about 20% of Dubai’s population is employed in this sector.
Because housing isn’t within the reach by many people, it is only natural that the same people look for other places where they can stay without drilling a hole to their pockets. Staff accommodation has been an affordable alternative for most employers.
It is worth noting that not many companies are keen on providing staff accommodation services. As a result, Dubai hasn’t seen many construction projects dedicated to staff accommodation. But recent demands have caught their attention and are now beginning to invest in this area.
Aside from constructing their own buildings, some companies in retail, hospitality, and facilities management are buying staff accommodation areas instead. Most of these areas are located in Dubailand, Dubai Silicon Oasis, and Sports City.
While we see mainstream developers traditionally ignore staff accommodation, they would most likely change their course as the demand for staff accommodation becomes more and more evident.
If you would like to learn more about staff accommodation, you need to get in touch with Rocky Real Estate. We have some of the best real estate experts who have the right knowledge and experience to guide you through your investment. Whether it is a residential, industrial, or commercial property in Dubai, Rocky Real Estate got you covered. Give us a call today to learn more!