Dubai offers everything that your heart desires; well, almost everything. Though tourists will not find themselves short of leisure or recreational activities to engage in, real estate investors on the other hand are facing some difficulties regarding the types of visas issued to them by the Emirati government.
Investors interested in pumping capital into Dubai’s real estate industry are currently being restricted by strict regulations on property visas which is hampering long-term investment prospects in the emirate’s realty sector.
Workable solutions are not out of reach, though.
The strict visa rules implemented for investors throughout the UAE are accompanied with certain technicalities according to which investors have to meet a set criteria to be eligible for a six month renewable multi-entry visa.
Currently, investors in Dubai have the option to apply for a maximum two-year renewable property permit obtained through the Dubai Land Department.
The problem is that the measures put in place by the Dubai government are discouraging investors from making long-term investments in the emirate’s property market, thus prompting them to look for investment opportunities elsewhere.
The general consensus taking root among experts in this connection is that offering long-term stay visas to long-term property investors will play a vital role in attracting more long-term investors.
The reasoning behind this move states that by relaxing the strict visa conditions for investors, more investors will be tempted to direct their capital toward the emirate’s real estate market, according to renowned immigration consultant Fragomen Worldwide.
As much as Dubai needs to hold on to wealthy investors to ensure that its property markets keeps improving, the property visa regulations at the moment benefit small and medium investors more.
Hassles of short-term Visas
The short-term visas being currently issued by Dubai government is no less than a test of nerves for people, especially retirees, living in the emirate. Retirees have to face the constant hassle of renewing their visas every few years to ensure that they live a comfortable life in the port city. This shows that retirees do not have long-term security for their investments which deprives them of the opportunity to settle down in the emirate for good.
Introduction of long-term visas will not only benefit wealthy investors, but will also provide a sense of long-term security for small and medium investors interested in retaining their capital in the emirate’s property market.
Dropping the ‘transient destination’ Image
The image of Dubai in the eyes of visitors and investors is that of a transient destination where people conduct business activities with a very short-term view.
This is not to say that the government does not have the means to tweak the system a little bit and make it work to their advantage.
The solution — the government should offer extended visas for investors interested in the emirate’s real estate market.
By doing so, the government can reap long-term benefits of this move by encouraging the establishment of a retirement market.
This way investors will feel comfortable when diving long-term into the emirate’s realty sector, knowing that they can live beyond their investments days with extended visas in hand.
With a strong real estate market already in place, Dubai’s real estate market will do well by changing its image from a transient stop to a permanent destination for high-level investments.
It is believed that investors will come flying to the emirate, an observation which can find solid ground in the following statistics.
According to UAE-based online property portal, Bayut.com, rental yields in Dubai’s select apartment categories can go as high as 8 percent to 10 percent.
Furthermore, yields for luxury villas has been calculated at 5 percent to 6 percent.
There is no denying that these are heartening numbers for long-term investors.
Tapping Into a New Market
According to Henley and Partners Manager Bata Racic, offering long-term visas to property investors would increase investment trend in the market and level the field for long-term investments.
Nowadays, a new phenomenon being observed on the international real estate stage is the rise of wealthy investors from emerging market states who have the capital and the means to establish second homes in international destinations.
If the UAE government takes the necessary steps to make amendments to its visa process, there is no reason why the gulf country cannot attract this particular group of people.
This move will also open up a new world of opportunities for Dubai which can then bank on more money generating options than the ones that are already in place. (https://www.bayut.com)
Investors interested in pumping capital into Dubai’s real estate industry are currently being restricted by strict regulations on property visas which is hampering long-term investment prospects in the emirate’s realty sector.
Workable solutions are not out of reach, though.
The strict visa rules implemented for investors throughout the UAE are accompanied with certain technicalities according to which investors have to meet a set criteria to be eligible for a six month renewable multi-entry visa.
Currently, investors in Dubai have the option to apply for a maximum two-year renewable property permit obtained through the Dubai Land Department.
The problem is that the measures put in place by the Dubai government are discouraging investors from making long-term investments in the emirate’s property market, thus prompting them to look for investment opportunities elsewhere.
The general consensus taking root among experts in this connection is that offering long-term stay visas to long-term property investors will play a vital role in attracting more long-term investors.
The reasoning behind this move states that by relaxing the strict visa conditions for investors, more investors will be tempted to direct their capital toward the emirate’s real estate market, according to renowned immigration consultant Fragomen Worldwide.
As much as Dubai needs to hold on to wealthy investors to ensure that its property markets keeps improving, the property visa regulations at the moment benefit small and medium investors more.
Hassles of short-term Visas
The short-term visas being currently issued by Dubai government is no less than a test of nerves for people, especially retirees, living in the emirate. Retirees have to face the constant hassle of renewing their visas every few years to ensure that they live a comfortable life in the port city. This shows that retirees do not have long-term security for their investments which deprives them of the opportunity to settle down in the emirate for good.
Introduction of long-term visas will not only benefit wealthy investors, but will also provide a sense of long-term security for small and medium investors interested in retaining their capital in the emirate’s property market.
Dropping the ‘transient destination’ Image
The image of Dubai in the eyes of visitors and investors is that of a transient destination where people conduct business activities with a very short-term view.
This is not to say that the government does not have the means to tweak the system a little bit and make it work to their advantage.
The solution — the government should offer extended visas for investors interested in the emirate’s real estate market.
By doing so, the government can reap long-term benefits of this move by encouraging the establishment of a retirement market.
This way investors will feel comfortable when diving long-term into the emirate’s realty sector, knowing that they can live beyond their investments days with extended visas in hand.
With a strong real estate market already in place, Dubai’s real estate market will do well by changing its image from a transient stop to a permanent destination for high-level investments.
It is believed that investors will come flying to the emirate, an observation which can find solid ground in the following statistics.
According to UAE-based online property portal, Bayut.com, rental yields in Dubai’s select apartment categories can go as high as 8 percent to 10 percent.
Furthermore, yields for luxury villas has been calculated at 5 percent to 6 percent.
There is no denying that these are heartening numbers for long-term investors.
Tapping Into a New Market
According to Henley and Partners Manager Bata Racic, offering long-term visas to property investors would increase investment trend in the market and level the field for long-term investments.
Nowadays, a new phenomenon being observed on the international real estate stage is the rise of wealthy investors from emerging market states who have the capital and the means to establish second homes in international destinations.
If the UAE government takes the necessary steps to make amendments to its visa process, there is no reason why the gulf country cannot attract this particular group of people.
This move will also open up a new world of opportunities for Dubai which can then bank on more money generating options than the ones that are already in place. (https://www.bayut.com)
