It is undoubtedly an excellent time to invest in the Dubai property market. Not only can you choose from a seemingly endless array of property types, from sleek apartments to modern villas and entire buildings, but luxury Dubai property continues to offer one of the highest yield rates of any major city in the world. With the growth of demand increasing steadily, particularly with the global interest of events like EXPO 2020, there is a constant call for housing. Whether it is commercial, off- plan or individual residential properties you are looking for, there are a multitude of options available. Both small and large-scale investors can take advantage of a buyer’s market which includes post-handover payment plans, waivers on service charges and DLD fees for off-plan projects.
Another reason why the Dubai property market is rife for potential investors is the recent changes to the visa rules overseen by the Dubai Government. In 2017, foreign investors committed AED56 billion to the Dubai property market and with the new options on visas, this number is only expected to grow. Here are some of the updates to the visa system that will benefit the Dubai property market and potential investors:
The 10 year residency visa
At a recent cabinet meeting, it was announced that investors and specialists, such as doctors and engineers will receive residency visas for ten years, as well as their families and dependants. In a move designed to attract outside talent, boost the economy and stabilise the workforce in-country, it has opened up the opportunity for residents to invest in property, more secure in their situation. It will also increase the number of long-term renters, which could appeal to investors looking for stress-free tenancies. This visa is also available to those who provide a minimum investment of AED 10 million, but only 40% of that can be in real estate.
The five-year residency visa
For those who invest in property worth over AED 5 million could be eligible for a five year residency visa. As with all of the visa options, the property cannot be purchased with a mortgage, ie not bought with any loans or financing, and the investment must be retained for a period of at least 3 years under standard liability. Those with this visa can also sponsor their family and dependents.
The two-year property investor visa
This visa is issued by the Dubai Land Department for those who have invested in a property in Dubai that is valued at over AED 1 million. With it, you are eligible to be a UAE resident and receive the associated elements including an Emirates ID, driving license and family sponsorship. The property cannot be mortgaged, off-plan or commercial and the investor must provide proof of an income over AED10,000 per month. According to Gulf News the property investor visa option can be quite costly, to the tune of Dh13,000-Dh15,000, but it is also valid for two years which could be far more convenient. It is worth also noting that those with this visa cannot spend a consecutive six months outside of the country.
The six-month residency visa
This visa is issued by the relevant Immigration authority and is a six months multi-entry visa. It is much like having a tourist visa, but with the ability to make multiple entries over a six month period. Unlike the two-year property investor visa, this visa is available for any property worth over AED 1 million in any of the seven emirates, and as such, is issued by the relevant immigration authority, not by the Dubai Land Department. This visa costs around AED2,300 and around AED 1,100 for renewal.
Both the two year property investor visa and the six month renewable visa will require the following documents:
- Title Deed on the property
- Passport copy of the applicant
- Current visa status/copy
- Passport photos (x6)
- Certificate of Good Conduct (from Dubai Police)
- Bank Statements
- Utility Bill