Brokers say the Cabinet overhaul of the visa residency system will boost the sector amid already strong demand
The expected overhaul of the UAE visa residency system will “hugely benefit” the country’s real estate market and bring a “significant influx in buyers”, brokers said.
The changes, set to come into effect by September, include parents being able to sponsor their male children until the age of 25, allowing them to remain in the UAE after school and university.
Skilled professionals on salaries of Dh30,000 ($8,100) a month or more will find it easier to gain a Golden Visa, while real estate investors can obtain Golden Residence when purchasing a property worth no less than Dh2 million. Investors can also obtain Golden Residence when buying one or more off-plan properties of no less than Dh2m from approved local property companies.
The UAE Government Media Office announced the changes, approved by Sheikh Mohammed bin Rashid, Prime Minister and Ruler of Dubai, on Monday.
The visa residency changes are set to provide further impetus to Dubai’s property market, which along with the wider UAE economy, has bounced back strongly from the coronavirus-induced slowdown. The value of property deals in Dubai more than doubled last year and broke a 12-year record in terms of volumes, Property Finder said.
“Changes in residency requirements in Dubai have had a significant positive impact on the real estate market in the last two years,” Andrew Cummings, Partner – head of prime residential, Middle East at Knight Frank, told The National.
“[Monday’s] announcement is a further step in opening up Dubai to foreign investors and will likely lead to a significant influx in buyers, bolstering an already active market.
“The changes to enable off-plan investors to also gain residency will have the biggest impact, and we are likely to see a increasing demand for off-plan properties, with buyers no longer being restricted to having to have a title deed of a ready property in hand.
“Whether or not this will lead to downward pressure on the resale market is more uncertain, with demand in this area predominantly being driven by end users rather than investors.”