Dubai real estate market is expected to sustain its growth momentum despite facing challenges on a global scale.
What are the different property-related visas available for expatriates?
The primary visa option in the UAE connected to property ownership is the Golden Visa. This visa grants a validity period of five years, eliminating the need for renewal every two years. Additionally, it allows individuals to spend an unlimited amount of time outside the country, unlike the requirement of returning within six months to maintain the validity of the two-year visa. To qualify for the Golden Visa, individuals must possess property or properties with a minimum equity value of Dh2 million.
Another visa choice is the Property Investor Residence Visa. This visa is specifically designed for individuals who are interested in investing over Dh750,000 in property registered under their own name or Dh1 million if the property is registered under their spouse's name. Similar to a regular visa, it requires returning to the country once every 180 days and can be renewed every two years.
It is important to note that for both of these visas, the investment value must be fully paid. In other words, purchasing a property for Dh750,000 with a mortgage does not meet the eligibility criteria. The investment amount must be in the form of equity in the property.
Will Dubai's property boom slow down in the foreseeable future?
I do not anticipate a deceleration happening anytime soon. Despite a slight decline in April, the month of May experienced further growth. Prices increased by 2.5 percent in May, representing the highest surge in over two years. The development of off-plan properties is a significant factor driving growth in specific communities, as developers capitalize on the increased interest in Dubai's property market. Interestingly, areas that were not previously considered prime are now commanding higher values, with the price per square foot on the rise.
Considering these factors, including the ongoing launch of off-plan properties, I do not foresee a downturn occurring in the near future. We are on track to achieve a record-breaking 100,000 transactions this year, indicating the maturity and strong momentum of the market, and signaling its continued upward trajectory.
Furthermore, with the resumption of international travel by China, there is the potential for them to leverage their investment power, leading to another wave of investments pouring into the city and further fueling the market. However, it is crucial to monitor the strength of secondary transactions, which rely on end users entering the market and contributing to the city's growing population as they settle in Dubai.
Will the growing population of Dubai have an impact on property prices? If so, how?
Dubai has set ambitious yet feasible goals to double its current population to nearly six million people by 2040. This projected population growth will naturally generate a higher demand for housing. Presently, the supply of housing falls short of meeting this demand, which is why there has been a surge in the launch of new off-plan properties, including significant projects like Palm Jebel Ali and Expo City. Developers are fully aware of the opportunities arising from this growth and are striving to offer competitively priced properties.
However, as the population continues to expand and the housing supply becomes more abundant, we can expect prices to stabilize instead of experiencing a sudden crash. This trend reflects the maturation of the market, where supply and demand gradually find a more balanced equilibrium over time.
News Source: Khaleej Times
