A sound majority of the residing population in the UAE does fall into the category of foreign "labourers", mostly serving the requirements for the construction works needed to keep pace with the flourishing real estate sector of the economy.

Addressing the issue of providing for public housing, the Government of Dubai announced recently a Dirham 10 billion initiative focusing on the local segment of the population. Though necessary, the move did not take into consideration the vast majority of foreign "labourers", neglecting the harsh conditions and the overpopulated flats where these labourers have no other choice but to occupy.

In Abu Dhabi the case is even worse, where the Government chose to demolish "outdated" buildings. About 150 buildings were scheduled for demolition early this year in the capital, and the criterion for tearing down a house is simply to be over 15 years old, a standard that is not applied in any other city worldwide.

Most of these "old" houses are populated by the communities of labourers who cannot afford the soaring prices of the newer buildings, nor the ability to reside independently. Thus the high density resulting from the increasing numbers of individuals sharing the same flats, even rooms. But what can happen if all the buildings scheduled for demolition are torn down?

Any metropolitan requires allowing for space to all segments of the society, and the increasing need for foreign labor participating in developing the UAE justifies appropriate consideration for housing such labour force.

On the other hand, despite the fact that demolition expenses can be minute relative to each individual development, yet collectively such funds can be utilised to provide for the necessary infrastructure needed for horizontal expansion, which seems a more logical option.

Moreover, it is quite a common practice and a fruitful investment for residents to rent spacious flats for the purpose of leasing the premises on a sharing basis. Such practice resulted from the fact that the average tenant in the UAE does not acquire the necessary funds to finance a quarterly payment.

Accordingly, the regulation of the property market cannot skip the everyday facts of life in the country, nor can the government ignore the absence of public housing estates any more, as there are obvious economic benefits to reap through the proper regulation of leasing in the property market, while providing for public housing can prove helpful in avoiding many problems.