Expert Advice with One Broker Group: How will the new residency visas impact Dubai property investment trends in 2019?
The Golden Card and long term UAE residence visas have made waves in the news since its introduction. With real estate investors eligible for certain categories, the new residency visas are expected to provide a boost to Dubai property investment in 2019. Today, Bayut is in discussion with Craig English, Managing Director of One Broker Group. Craig is one of the leading, respected figures in industry, with over 10 years of experience working with commercial and residential properties in the UK and Dubai.
In this Expert Advice segment, Craig discusses how the permanent residency visa could impact Dubai real estate prices. He also touches on how property investment trends in Dubai could evolve and why the 10 and 5-year residency visas are a very realistic option for smaller investors.
WHAT IMPACT WILL THE GOLD CARD UAE VISA HAVE ON THE DUBAI PROPERTY MARKET?
Craig believes the Golden Card will ultimately have a positive impact on property investments in Dubai. While the effect of the permanent residency will not be reflected on Dubai property prices immediately, he predicts that it will make a big difference in the long run.
With the upcoming Expo 2020 poised to attract 25 million visitors to the city, it’s an opportunity for the Dubai real estate market to capitalise on these new investors. Especially considering the luxurious lifestyle, tax-free income and now the long-term residency the UAE offers, overseas high-profile investors will be eyeing freehold areas in Dubai with greater interest than ever. With the increased demand for properties in Dubai, we can expect to see prices rise.
This announcement will also strengthen Dubai’s standing in the global index for property investments, particularly in Asia. It’s backed by the recent increase in Chinese real estate investors in Dubai, who are among the top four foreign investors now. The competitive property prices and flexible payment plans are already a great draw for Chinese investors, and with the added initiative of the Gold Card UAE visa, investments in Dubai property market 2019 are expected to see an increase.
WHAT DUBAI PROPERTY INVESTMENT TRENDS CAN WE EXPECT IN 2019?
According to Craig, property investment trends in Dubai have remained stable since the last year, with investor profiles remaining consistent. However, the impact of the long term visa on Dubai property investment could change this.
Craig also expects a rise in demand for both affordable and luxurious properties for sale in Dubai. He believes that there will be a rise in budget investments by those simply looking to build their portfolio. Meanwhile, Dubai real estate will also continue to attract high net-worth individuals and business owners, who will invest in more affluent areas, especially following the recent policy of 100% ownership of businesses. The UAE ranking as the world’s safest country is another factor that will draw buyers, encouraging them to put down their roots here.
The increasing number of lucrative offers by developers will also impact Dubai property investments, emphasises Craig. Developers are competing to attract buyers with excellent deals like DLD waivers, service fee waivers and low monthly instalments. While previously buyers could expect one of these offers, today, developers are bundling them together to provide unbeatable opportunities for buyers in the Dubai property market right now.
WHAT ADVANTAGES DO INVESTORS ENJOY TODAY WHEN THEY BUY PROPERTY IN DUBAI?
Today, aside from the luxurious lifestyle and properties that UAE offers, real estate investors can also enjoy long-term residency in the UAE, says Craig. It’s a realistic option since there are many people with AED 5M and AED 10M worth of investments in the Dubai real estate market 2019. These long term UAE visas add a further sense of security for those who have already purchased property in Dubai real estate. On the other hand, residents who haven’t bought property will be incentivised to do so, since the new UAE visas let them see Dubai as a long-term option. There are also various long term visa options for real estate investors: the 10-year UAE visa is ideal for those who have a diverse investment portfolio while the 5-year visa is great for smaller property investors. There are benefits of long term UAE visas even for overseas investors since they have another safe, flourishing city that they can call home.
And that’s not including the other benefits of buying property in Dubai. The Dubai real estate market has a much more attractive price point than other cosmopolitan cities, like Monaco and Singapore. Buyers also enjoy excellent loan-to-value ratio when taking out mortgages to buy property in Dubai. This goes up to 50% LTV for non-residents and up to 75% LTV for residents living in the UAE. Combined with the high rental returns and capital appreciation, Dubai has firmly cemented itself as one of the most lucrative property investment destinations for 2019 and the years to come.
