Visa move to boost Dubai property demand

The UAE government decision to extend the residence visa period for real estate investors to 3 years will significantly enhance investor confidence and drive the growth of the country’s property sector. Emaar Chairman Mohamed Alabbar said the property sector is a key contributor to the non-oil GDP of the country, and is one of the largest employment providers apart from supporting several associated industries. “The cabinet decision underlines the vision of His Highness Shaikh Khalifa bin Zayed Al Nahyan, UAE President, and His Highness Shaikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, to further boost the competitiveness of the UAE,” Alabbar said. 

The UAE government announced several steps, including the extension of visa for real estate investors to three years from six months, to accelerate economic growth inline with its strategic plan 2011-2013. “We see the new visa law as being an extremely positive step for those who have already purchased property and as an incentive/confirmation to those who have stepped back from purchasing due to the issues surrounding the investor visa and the freedom to reside in any property they may buy,” told Elaine Jones, chief executive of Asteco Property Management. 

In a research note, Citigroup also said the decision could significantly boost demand in Dubai’s residential real estate sector, where the promise of a long-term residency visa was a major driver of second-home purchases during the boom prior to mid-2008.