Are more developers working on bringing purpose-built retirement home projects to the UAE after the new law?
As the law has just recently been announced that it’s a bit early to see any developers launching any purpose-built projects. However, it is definitely on top of their radar compared to previously and especially when there are over 150,000 residents aged 55 and over who need to be catered for. There is definitely a case for purpose built retirement homes and will expect to see developers jumping into this category very soon.
Does Dubai currently not have such projects? What would be the features/specifications of such developments?
Developers at the moment have been focusing on flexible payment plans, coupled with lower prices. I expect retirement home projects will be the ‘next big thing’ that developers will focus on, as it’s a very lucrative market. As we have a rapidly increasing aging population and the success of retirement home projects In the West, I expect developers to start building these very soon.
Would units in these projects be at the higher end of the price spectrum and what would the average price for a unit be?
As the aging population increase so will the income gap. Developers will have the demand to cater for both the low and high-end retirement home developments. Having said that as it’s a novelty factor as of now I expect developers to focus on the higher end of the price spectrum for now till more competition enters the market in this field. Also as there are certain income requirements from the government for individuals over 55 years, I expect the price to be focused on the higher end with the average price above 1200 AED/ sq. ft.
Will this move attract a lot of foreign investors?
Yes, I believe it will as Dubai is well situated and offers an abundance of options for individuals over 55 years such as a great lifestyle, sun every day, security and first-class amenities that even many western countries lack.
Are these projects likely to come up in the city center or on the peripheries?
As the land in the city center is limited due to the many construction projects already. I expect most of these projects will be situated in the peripheries.