November 23, 2007

Housing for Limited income people bought by High income people.

Saraya Aqaba, 1 villa cost JD1.5 million which also buy 75 housing units at Al-Majd affordable Housing project, photo by Emad Salameh

"Construction work on the $350 million Madinat Al Majd project in Zarqa, which entails the creation of 18,500 residential units targeting limited-income people, began on Wednesday.

The residential city, to be created over 2 million square metres and accommodate some 50,000 inhabitants, will include houses of different sizes that will be sold at “affordable” prices starting from JD18,000 per apartment.

Madinat Al Majd also house a large mosque, schools, a medical community, cultural and shopping centres.

The first phase of the project, which will see the construction of some 500 housing units, will be completed in one year, adding that the project will help meet the increasing demand for small-sized apartments.

A recent study on civil servants conducted by HUDC indicated the demand for such apartments exceeds 60,000 while the total demand for housing in the Kingdom currently stands at 200,000 units.

Madinat Al Majd, the first housing project to be developed for the limited-income segment, will be a significant architectural landmark in Jordan. It would provide the wider community with the chance to own homes in a healthy environment for a monthly payment similar to what they would pay in rent.

Noting that the project is the result of cooperation between the public and private sectors, and it it has received the full support of the government.

Over the next six months, Tameer will announce a series of projects to be implemented in the Kingdom, including the construction of a residential city for high-income earning individuals, as well as towers, malls and commercial buildings.

Four residential cities will be built in the near future: One in Amman called “Ahl Alazm”, and three in the Balqa, Irbid and Aqaba governorates."

When I saw this project being marketed at Cityscape Dubai in Oct 2007, the first phase of the project with the 500 units were SOLD OUT during the first exhibition day for about 20,000 JD a unit, but, who bought them and for whom it was marketed at Cityscape Dubai 2007, the irony it was for the real estate brokers and the business buyers.

This project got the cooperation from the public and private sectors and the support and the blessing of the government as the first "affordable" housing project targeting the limited income, so we assume that the buyer is the limited income citizen.

When you position yourself as a limited income housing you need to make sure that the buyer is the limited income buyer and before you get the payments you need to ask for the bank statements and proofs that the buyer is in need for an affordable house, meeting your based targets.

Did this happen?

Maybe this goes to "lessons learned" category which we hear it often these days. However, in the next "Affordable" projects I wish this will be in forced.

Or it might go to the category of: " Investors incentives", "Special strategical planning", etc, etc

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Type rest of the post here

7 comments:

halla huws said...

ok, this is sad...the project lost it's purpose, and the prices will be doubled by next year..there should be a committee where people can register in, and this committee should be the judge to whom these units be granted . by studying their incomes, saving even age and family members statues..wishful thinking, some units would be under a housing benefit program. are they trying to help people to live a good decent life, in healthy surroundings, or create more profit to already wealthy people?????

mais said...

"the first phase of the project with the 500 units were SOLD OUT during the first exhibition day for about 20,000 JD a unit"
..... so clearly it aimed to serve as an affordable shelters for ppl who again "afford" the luxury of "affordable" home hunting @ Dubai city-scape..!

Emad said...

It's all business, they are interested in selling and raising money.

In other countries they do exactly what you mentioned, they ask for proofs of status, credit check or bank statements, and they afford it with more incentives.

halla huws said...

But what about the location, i guess it will not attract people who can manage to afford something more expensive, they would rather stay in amman! what do u think?

Emad said...

Its located 20 KM away from Amman toward Mafraq. 20,000JD is "Affordable" by the "Limited income".

I think you missed my point.

The businessmen buys it to sell it later for the limited income and not for living in it, since there is high demand and good cheap price.

halla said...

the project is a great idea..i understand...but those businessmen are hoping to invest their money here, and by next year, they will increase the prices ..right...so if u are on a low income, u would rather pay more to be in amman if it wasnt that cheap 20 km away...cause you will spend the few extra thousands on fuel in a couple of years..that is what i meant, so the government should control how much they (meaning the present time owners) can increase the prices,when they decide to sell, in a percentage according to the countries economical state.

Emad said...

Thats a great proposal, but, do you think the government can control that?

Moreover, when the prices of the houses goes up, all the lands around it goes up too ... and here we go again, nobody will buy to live, all we have is high prices for houses and lands with less demand.

In other words, inflation!

If we have a good transportation system it won't be a problem to commute, however, I don't think this project is made for someone in Amman.

FYI, Al-Majd housing owners are UAE Tameer holdings.

We are just copying Dubai real estate model that will kill us and our economy in the near future.