Dubai’s real estate market had a solid year in 2017 with approximately AED 285 billion worth of transactions, and off-plan sales played a very significant part in that. With a new launch happening seemingly every week courtesy of developer such as Emaar and Meraas in some of the most prime areas of the city, it was definitely a good year to invest in the future. So far in 2018, off-plan sales haven’t held quite the same sway over the market, but that is expected to change once autumn comes around, and especially after Cityscape 2018.
With a total transaction volume of AED 111 billion the market is off to a slower start than the same period in 2017. However, Dubai is positioning itself as a more investor-friendly city than ever before with a series of new regulations announced over the past six months. Most important is, of course, the recent announcement that the UAE government will be granting 10-year residency visas to international investors, specialists (such as doctors and engineers), and top performing students. Expected to be implemented by the end of 2018 with visas potentially being issued from Q3, this new residency plan is set to open a multitude of new opportunities and present flexible regulations to attract global investors. Businesses, which previously had the requirement of a local stakeholder to be operational, will now have the option of 100% foreign ownership, which is bound to alter Dubai’s commercial landscape quite significantly in the years to come.
Investors previously seeing investing in Dubai as only a short-term option will be more inclined to invest long-term with the new regulations. Despite having some of the most exclusive and luxurious homes in the world and offering competitive pricing and generous payment plans, Dubai still had too much a transient atmosphere for investors to really sink their teeth into it. The advantage of gaining a 10-year visa would provide them with more flexibility and security for their potential investments. The residency plan is also aimed to increase inward investment as well since current residents of Dubai might invest in local real estate to reap the benefits of the new 10-year visa, allowing them to settle long-term in Dubai.
In recent years, property investment into the UAE has been steadily rising, with year-on-year increases in investment by GCC nationals and a few other key nationalities. In the first half of 2018, the top investors were from the UAE, India and Saudi Arabia, demonstrating the continued confidence of regional investors in the city as well as the strong economic ties between India and the UAE. The new regulations will help the UAE further establish itself as one of the most stable investment destinations in the region, attracting more investments not just from these key groups but a far broader demographic of investors.
This news is a major boon for the world of luxury real estate, where a single investment ranging in the millions can now be offset by a longer period of investment instead of hoping for the best short-term gains.
With so much incentive to invest in Dubai’s property market, what are some of the best areas in which to make your investment? Stay tuned as we break down the best communities for off-plan investment in our upcoming posts.