The new visa rules are a paradigm-shift for the Dubai real estate market and the best is yet to come. Why? What is the difference with the previous visa rules?
- With only 2 Million DHS, it is extremely attractive and offers unbeatable value for money at a global scale.
- It is also beyond affordable, as with a 25% (500,000 DSH) down payment mortgage buyers can own properties in Dubai and often with 10% (200,000 DHS) down payment investors can start their property ownership journey.
- The other big advantage I see is that it reduces speculation in the Dubai real estate market and boosts stability and growth:
- Off-Plan: Less defaulters, less speculators, Less Resale and flipping for a short-term profit.
- It enhances the leasing stability for tenants. In many cases when the market is up trend, landlords become sellers as they realize profit on resale. In today’s market, the number of eviction notices are a hundred times higher than the past five years. In order for landlords to make their properties more attractive to buyers, especially to end users’ buyers, they send eviction notices to tenants notifying tenants that they have to evict their premises as it is up for sale. On the other hand, tenants are holding on to their existing rent as current market prices are often much higher than their existing rent that was signed up in the past few years. With new rules, many property owners with a visa registered under their properties, they understand that they have to hold on to their property ownership to keep their visa valid, which means more stability for tenants too.
- Also off-plan property buyers, as well as mortgage buyers, will be far more motivated to keep their property ownership, pay their instalments on time and think long term.
- At fam Properties, as we operate at a very large scale nearing 400 real estate agents and 11 branches, we are witnessing 3 X in the number of inquiries since the visa rules came out in the last few days. It has indeed gone viral worldwide and especially in the EU. That is just a great addition to the booming real estate market that started post covid in 2021. I have been in the real estate market for 15 years. I have never witnessed a better market in terms of healthy steady growth and great entry opportunities offering all kinds of properties, from ultra luxury waterfront all the way to golf living experience, city living and affordable living.
To sum it up, the new visa rules boosts LONG TERM PROPERTY OWNERSHIP. This will indeed not just boost the real estate sector, but it will indeed simulate the entire wheel of economy in Dubai, boosting all other business sectors.