Visa Reforms to aid and boost Real-Estate Investments in UAE
As we informed our visitors in our previous articles that UAE government and Cabinet Authorities have decided to get more flexible with their visa permit rules, the authorities made an announcement on elongating the visa period for investors and some other specialists belonging to different operational sectors. This special consideration and step were taken to boost and stabilize the currently turbulent real-estate conditions in the country that have been facing quite a downside for some time now.
It looks like the decision and announcement certainly worked in favour and turned out successful in achieving the very intention and purpose behind it. UAE cabinet authorities’ announcement on allowing and granting long-term visas to investors, entrepreneurs, and specialists in other disciplines is expected to retain a higher more aggravated number of High Net Worth Individuals i.e. (HNWI’S) High Net Worth Individuals are those possessing a higher number of assets or capital and are capable of making valuable investments like land investment in a given economic set up.
The Cabinet Authorities divided the types of investors and their terms and conditions on providing the respective long-term visas in to two main categories i.e. Investors with a property investment value of AED 5 million or more will be provided with a 5-year residence visa and Investors with property investment value of AED 10 million in public sector through a deposit, an established company, a business partnership worth AED 10 million or a cumulative investment in all the mentioned areas summing up to AED 10 million as long as non-real estate investments are not lesser than 60% of the total will be provided with a 10-year residence visa.
The existing property visa is a two-year renewable visa for a freehold property against a property investment of Dh1 million or more on the title deed. The 5-year residence visa is also expected to encourage and boost investments because even the longer-term expatriates can now think of investing in such properties that previously seemed out of range for them. Dubai is full to the brim with expatriates flying in to the country every year and therefore, being able to attract and retain their interest in property investments is certainly of prime importance for the real estate investment sector in UAE as it is indeed a very huge target group to penetrate.
Shedding some light on the significance of the new visa reforms, Elaine Jones, the Executive Chairman of Asteco, a leading property management and real-estate group stated: “Over the past year, we’ve been witnessing a trend towards investors preferring affordable property as the tax-free income is still very good. With the new visa reforms, it is possible that existing residents will look to establish themselves in the Emirates on a medium- or longer-term basis and as such, look to enhance their residential property. We will see a boost in the luxury real estate space as those who are looking for an alternative location in which to reside now have another option.”
Jones also added: “The retention of HNWIs who had not previously enjoyed any security of residency and will now be able to secure a 10-year visa subject to Dh10 million worth of investment in business, is likely to be significant. There is likely to be an increase in foreign investments as the ability to establish ties for the medium term will attract a next generation looking for a stable location in which to base themselves, their family and establish business. The UAE will re-establish its position as one of the most attractive destinations to investors”.
Elaine Jones stressed the importance of the newer visa reforms and said that the next step for the Cabinet authorities should be to grant permanent residency to long-term investors.
Dubai has always been divided into a class gap i.e. areas like Jumeirah, Marina, Downtown Dubai etc have always been thought of as impalpable ones, so expensive that a normal wage-earning person cannot even imagine of buying. The recent visa reforms have been carried forward to change that mindset. Now, expatriates who have been living in the country for years can also make investments in such high profile areas at affordable rates and payment schemes. Mr. David Abood, Partner at a renowned Real-Estate group touched the same issue and stated: “The waterfront locations of Jumeirah, Palm Jumeirah, Dubai Marina, Dubai Creek Harbour and high-value properties in MBR City and Emirates Hills are expected to see renewed interest. This is expected to boost both the supply and demand side of the market as this will go a long way in attracting and retaining long-term investors. We foresee a strategic focus of new project launches/deliveries to be aimed at offering properties priced over Dh5 million to attract international investors.”
Thus, based on all that these market changers and trendsetters have to say and support regarding the longer-term visa reforms and their significance to the country, we, at zooma.ae are certain that such advancements by the Government will further pave the way towards the country’s socio-economic progress. So, if you are also one of those looking for some great options for investments, check our website now and find every single details on all the off plan properties in UAE on this one stop portal.