Even though the number of labourers in the UAE has declined in recent months, there has been an increase in demand for quality accommodation for workers, Emirates Business has learnt.
Companies are making use of the existing low rental rates and abundant supply of newly constructed labour camps to shift their workers to better facilities from congested and unhygienic accommodations.
This also comes on the back of more stingent regulations set by the Dubai Municipality for housing workers, coupled with better enforcement. The civic body has even made it mandatory for companies to improve the housing standards of their labourers and to meet its new requirements in order to be elligible for the renewal of trade licences.
Real estate brokers that this newspaper spoke to said labour camp rents have come down by 60 to 65 per cent in major bachelor accommodation areas such as Al Quoz and Jebel Ali, and now there was also an oversupply of such camps in these areas.
Michael D'Souza, Managing Director of Humaid Al Suwaidi Real Estate, a company managing more than 10,000 labour accommodation rooms in Al Quoz, said: "The lease rate for labour camps in Al Quoz has seen a fall from Dh8,000 not long ago to Dh6,500 per room per month (for a six-worker room). Al Quoz has been the most preferred area for worker accommodation because most high-rise construction projects were focused mainly on the Jumeirah Lake Towers, Dubai Marina and Business Bay areas, which are all easily accessible from Al Quoz."
He said rents in the "Sonapur" area are 15 to 20 per cent cheaper than Al Quoz and the rate in Jebel Ali has been 15 to 20 per cent less than Sonapur rates.
"Now rooms are available at almost half their previous rates and Dubai Municipality insists that employers shift their workers living in poor quality camps to better ones," D'Souza said and added that Humaid Al Suwaidi now has 6,000 new quality rooms in Al Quoz.
As per Dubai Municipality rules and Ministry of Labour specifications, each worker has to be provided 40 square feet of area and each 240 square feet room can accommodate three double bunk beds - or six people.
The civic body has also made it a condition for renewing trade licences for companies that they should change their workers' housing from poor quality accommodation to those with better facilities.
Earlier, the authorities were flexible because companies were unable to find quality accommodation due to the shortage in the market and many were forced to put as many as eight to 10 workers per room.
Demand for better labour camps, with more facilities, has, therefore, gone up even as supply of labour camps in general has increased in the market. As companies can now accommodate fewer people in a room, this adjustment is creating new demand for workers' accommodation.
In addition to the minimum of 40 square feet required for every labourer in an accommodation, Dubai Municipality rules stipulate that at least one bathroom for every eight people.
A circular issued by the municipality to engineers building labour camps said no temporary structures shall be allowed in labour accommodations. Any material that contains asbestos or other substances that are harmful to the environment or public health should not be used. The flooring should be done using non-slippery materials that are easy to clean and do not wear fast through the use of detergents. Rooms should include the necessary furniture, such as a single bed and storage cabinets for each labourer.
As in all other residential buildings, there should be enough ventilation, natural or artificial light, thermal insulation, drainage, water supply, gas, electric supply, fire-safety measures, and health and environment preconditions. All rooms, kitchens, dining rooms, and other halls should be air conditioned as per the prevailing specifications introduced by the municipality.
Common services such as kitchens, multi-purpose halls for dining and watching television, accessories rooms, prayer halls, first-aid room, and other service rooms should be on the ground floor itself. If there is space left over on the ground floor after providing all of these services, it can be utilised for housing the labourers.
External floors, open space and corridors outside the camp should be paved with non-slippery tiles or should be landscaped.
The pavement should be paved with interlocking tiles. Toilets and bathrooms shall be furnished with clothes hangers, soap dishes, exhaust fans, hot water connections, mirrors, and cabinets. The water tanks should be covered by sunshades to ensue cool water during summer. Also, there should be enough water coolers in each camp depending on the number of labourers residing there.
Market source said that during the recent boom, prices of land plots dedicated for labour accommodation in Jebel Ali had gone up from Dh50 per square feet to Dh1,000. The current oversupply of labour camps is also a result of the many new big camps that have been constructed in the recent past, after the land price rise convinced many speculators that the boom would continue to grow.
"We currently have 10,000 rooms in Al Quoz and Sonapur accommodating 60,000 workers, which include recreational facilities, mosques, travel desks, clinics, supermarkets and saloons," said D'Souza.
He said his company was ready with deluxe labour camps and staff accommodation in Al Qouz for 3,000 workers. Each block contained 141 rooms - double rooms (18x27) and standard sized ones - (13x18) with 66 toilets and washrooms, kitchens and separate dining rooms. There was also separate ladies' accommodation available in the new camp, with an independent dedicated block. Areas have also been designated for restaurants, supermarkets, clinics, money exchanges, hair cutting saloons, travel agencies and other facilities usually needed by workers. A mosque at the premises could accommodate several hundred workers and there were separate volleyball and basketball courts for sports and leisure facilities. Sewerage clearance and regular pest control was also in place, along with the provision of 24-hour security, fire fighting systems and assistance in identifying catering services for workers.
Demand for worker housing has come down in the Jebel Ali and Dubai Investment Park (DIP) areas. In Sonapur, agents handling labour camps said a lot of old camps were being demolished and some owners were keen to upgrade the quality.
A real estate agent handling labour camps, who identified himself as Jahansahab, said he had a number of labour camps in Sonapur, Al Qouz and DIP, and the rent depended on the customers' requirements and the quality of the camps.
"We have 57 rooms in Al Qouz, 200 rooms in DIP and 250 rooms in Sonapur. The labour camp rent varies from Dh1,600 to Dh2,500. If the camp is old, you will get it for a cheaper rent and some landlords are ready to give a discount over the market rate because their camps are lying vacant."
D'Souza added: "Dubai Municipality now insists that companies with registered offices in Dubai accommodate their workers in Dubai and not in Sharjah or Ajman. A lot of companies are shifting their workers from cramped labour accommodation in Sharjah and Ajman, where the rate was lower, to Dubai where the current market rates are very attractive. "There is not much difference in the lease rate now in Dubai and Sharjah. In addition, by shifting camps to Dubai companies can save three hours of travel time and can improve workers' productivity."
Some of the old and dirty camps in Sonapur are being demolished or upgraded. Earlier, property owners used to insist on one or two cheques for the entire year. Now landlords are ready to accept up to 12 cheques for the annual rent.
Good quality labour camps are also in demand among big hotel chains to house their staff, whom they earlier used to house in residential buildings at exorbitant costs. These hotels are now prepared to pay for the luxury and high-end labour camps whose rates have fallen compared to a couple of years ago. The reason for this is that the high-end camps, while comparable in amenities to residential apartments, still come cheaper for the companies.
Another reason for the general fall in labour camp rents is that a lot of companies have sent their workers on long leave and vacated the camps in Dubai.
"If previously a company occupied four blocks, they are now retaining only two. The price of land in designated labour camp areas in Jebel Ali had gone up from Dh50 per square feet in 2003 to Dh1,000 per square feet during the boom time. Now there are no takers for the land even at Dh300 per square feet," said a broker requesting annonymity.
Landlords said that even families are willling to relocate to Dubai and Jebel Ali from Sharjah provided they get budget accommodation with proper facilities.
One for the women
Female workers account for less than one per cent of the total work force in the staff accommodation or labour camp areas and special permission is required by companies to accommodate female workers in labour camps.
For ladies' accommodation, there should be a separate entrances with 100 per cent segregation from the male labour camps, accompanied by 24-hour vigil and security.
Female workers who are working mainly in the hospitality, cleaning, maid services and security guard companies have separate and independent camp blocks in Al Quoz.
By VM Sathish
© Emirates Business 24/7 2010
