The UAE’s decision to grant permanent residency to investors and entrepreneurs is an important boost to the country’s property market, according to Property Finder.
The ‘gold card’ system would see an initial batch of 6,800 people being granted their new status. The first batch of investors would hold total investments of AED100 billion ($27 billion).
“This is a game changer for the real estate industry in Dubai,” said Lynette Abad, the director of research and data for Property Finer. “We are yet to get full details of the gold card program, such as who can qualify, the terms, etc. However, it’s definitely a step in the right direction and very much needed to stimulate investment, especially foreign direct investment.”
According to Property Finder, the current short-term visas linked to employment hold back expats from investing and owning real estate in the UAE, with many opting instead to remit their savings back to their home countries.
In a statement, Property Finder said the permanent residency program has the potential to be a ”game changer” for the real estate sector.
“It would have an immediate positive effect on market sentiment and aid in absorbing the supply scheduled to come to the market,” the statement said.
In the first week alone, the UAE government reported receiving approximately 6,000 applications from investors and entrepreneurs seeking long-term residency visas.
“Initiatives and new regulations like these are expected to have a positive impact on the real estate market in Dubai,” Abad said.
“The more the government offers to entice talent and companies, the easier it will be for them to settle here and call Dubai home. Then, the investment should follow suit,” she added.
The Property Finder statement added that developers would be well advised to incentivize investors with schemes that offer “permanence and value for money” in a competitive market.
Source: Arabian Business