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UAE residency: Here are various visas you can get after purchasing a property

Dubai property boom is likely to continue despite global headwinds

What are the various property linked visas available for expats?

The primary visa in the UAE linked to property ownership is the Golden Visa. This visa provides a five-year validity period, eliminating the need for renewal every two years. It also allows unlimited time spent outside of the country, compared to the requirement of returning within six months to maintain the validity of the two-year visa. To be eligible for the Golden Visa, individuals must own property or properties with a minimum equity value of Dh2 million.

Another visa option is the Property Investor Residence Visa. This visa is 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 standard visa, it necessitates returning to the country once every 180 days and is renewable 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.

Is Dubai’s property boom likely to slow down anytime soon?

I don’t anticipate this slowing down in the near future. Following a slight dip in April, May witnessed another month of increased growth. Prices rose by 2.5 per cent in May, marking the highest increase in over two years. The off-plan segment plays a significant role in driving growth in certain communities, as developers take advantage of the heightened interest in Dubai’s property market. Notably, the price per square foot is rising in areas that were previously not considered prime but are now commanding higher values.

Considering these factors, including the ongoing launches of off-plan properties, I do not foresee a decline occurring anytime soon. We are currently on track to reach 100,000 transactions this year, which would set a new record for Dubai’s property market. The market is maturing and possesses substantial momentum, indicating that it will continue its upward trajectory.

Moreover, as China resumes international travel, there is the potential for them to exert their investment power, resulting in another wave of investments pouring into the city and further fuelling the market. However, it’s crucial to monitor the strength of secondary transactions, which are driven by end users entering the market and contributing to the city’s growing population as they settle in Dubai.

Is the fact Dubai’s population is growing likely to play a factor in affecting property prices? If so, how?

Dubai has ambitious yet realistic plans to double its current population to nearly six million people by 2040. This projected population growth will naturally lead to increased demand for housing. Currently, the supply of housing falls short of meeting this demand, which explains the surge in new off-plan property launches, including notable projects like Palm Jebel Ali and Expo City. Developers are keenly aware of the opportunities presented by 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 stabilise rather than experience a sudden crash. This trend reflects the maturing nature of the market, where supply and demand find a more balanced equilibrium over time.

The writer is branch director at Betterhomes.

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