Will the new long-term visa promote real estate in Dubai?
Last year the UAE government proposed new long-term visa laws, primarily for investors, professionals and select students, for the international community. By giving long-term residency, the government seeks to enhance the country’s economy further and further strengthen the position of countries as the prime place for international investors.
The long-term visa for investors was a real estate enthusiast of this government programme that received our notice. This project is the first of its type in the region and is intended to promote investment by residents and foreigners in the UAE property market. These are often evidence of the maturity of the property market in Dubai, strengthening the buyer’s trust and boosting the Dubai property market. Before examining the benefits both for the investor and the market in general of the project, let’s talk about the several types of investment visas that the Cabinet of the UAE has announced.
Long-term visas are two categories for investors, both within the UAE and outside. The most fundamental option is to issue a 5-year residency visa for a minimum investment of AED 5 million. This can be a property of that value or any other investment kind. The second type of visa is the one that dominated the news for a buzz in the immobilization industry. The visa type gives the ten-year resident visa to investors who invest at least AED 10 Million, provided that at least 60% of the investment is for a non-real estate investment. It may take the shape of a corporate partnership or any other public investment. According to estimates from the Dubai Land Department that reflect vital sector in the January-May period, the overall value of Dubai real estate transactions surged 33 per cent to Dh34 billion, compared with Dh24 billion for the same period the previous year interests.
Property developers have reported that international news of long-term visas was obtained as inquiries from foreign purchasers, particularly China, rose from prospective purchasers. The steady price drop over the years has made the real estate market in the UAE more attractive and cheap.
For the types mentioned above of visas, certain conditions must be met. The essential criteria are that the investor must pay the entire investment amount without any financing or loans. You can even extend these visas to include your spouse and children. This new programme is expected to attract and retain foreign investors with greater international net worth and encourage retired residents to invest in the country to continue to live in their houses.
This legislation will also force many investors to expand their AED 5 million or AED 10 million investments to take advantage of the new long-term visa. Indeed, more investments are expected this year in places such as the Dubai Hills Estate, Arabian Ranches, Downtown Dubai and JBR, all with projects above the AED 5 million levels. There will also be considerable demand for inexpensive projects because some former buyers wish to reach the same goals. In contrast, others may prefer not to invest all their money into one building.
The new visa programme will undoubtedly have a substantial beneficial impact on the immovable market in Dubai. It will ensure the stability of eligible citizens to invest in the urban real property market, stabilizing the immovable market in the long term. There will be more end-users in the market. If you want to know more about investing in Dubai, please get in touch with one of our specialist agents by clicking on the “Book a meeting” button below, or use the chatbox to email us your inquiry. I hope this short article was helpful!