UAE changes in the visa system will boost real estate investment

Announced by HH Sheikh Mohammed bin Rashid Al Maktoum, the Vice President and the Prime Minister of the UAE and Dubai Ruler, the changes include 100% foreign ownership of firms within the UAE outside of dedicated Free Zones, five year student visas, 10 year investor visas and 10 year visas for a range of skilled professionals. Set to be in effect by the third to fourth quarter of 2018, this new reforms cements UAE’s position as the number one investor-friendly country in the world.

The proposed measures provide long-term legal clarity to the residence and business status of some expats and will, therefore, offer an immense initiative for investors to buy property in the UAE. The visa residency initiative is destined to boost FDI while also increases the chances of another freehold boom that originally made Dubai the remarkable city that is today.

“We welcome the changes to residency visa regulations, which will undoubtedly have a positive effect on the UAE economy – and in particular the real estate sector,” said Nakheel chairman Ali Rashid Lootah.

The proposed residency and ownership changes will help increase local consumption in the economy and create a further impetus towards the real estate sector. The planned reforms will enhance market loyalty as they create long-term perspective for investors. Dubai is already an attractive destination to live in, but this is a huge step away from being a transient city and is now moving towards becoming a city expats can finally call home.

Craig Plumb, head of Mena research at JLL, highlights that the upcoming measures only confirm the desire of the federal government to address the declining prices in real estate and rejuvenate the market.

Talal Al Gaddah, CEO of MAG Lifestyle Development, predicts that the introduction of the 10-year residency visa will prove fundamental in real estate growth. Gaddah underlined that expats will benefit from the new visa plans that will open to them a long-established diverse global community.

With the main drivers of demand in UAE property being Gulf residents and expats, the Emirates will now look for semi-permanent residents and increase the demand for commercial and residential ownership.

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