Realtors reported that the country’s expansion in granting long stays to a number of specialized categories, and the imminent launch of the “Expo 2020 Dubai” exhibition, will contribute to supporting the continuation of the rising curve of the real estate sector during the current year, and increasing the demand for real estate, whether by owning or renting.
They pointed out to “Emirates Today” that granting these residencies to specialized categories such as programmers, contributes to increasing population density and growth in demand for real estate, housing and rental, expecting an increase in real estate sales during the last quarter of this year.
In detail, the CEO of Binghatti Real Estate Development Company, Mohammed Binghatti, said that “the decision is good, very smart, and will contribute directly to the prosperity of the real estate market in the short and long term,” explaining that this measure helps to increase the population density, and thus increase Demand for real estate, whether to own or rent.
Bin Ghati added that real estate developers are among the most positive groups in light of this good news, by granting residency to 100,000 programmers around the world, indicating that the granted long-term visa will stimulate ownership of the property in light of the security condition that the visa provides for this category of residents. Owning real estate will be the preferred option.
He also pointed out that once the new residents settle down, they will think about investing and owning a private company in the country, with a length of stay of about 10 years, and some may plan to invest and own real estate for the purpose of renting it out and achieving a good and stable return.
real estate sector
For his part, Ashraf Mahmoud, Chairman of the Board of Directors of the “Aras Group”, said that “the real estate sector was the most beneficiary of the incentives launched by the government of the UAE, including long stays or the so-called golden residency visa,” noting that allowing obtaining a golden residence Attracting many towards buying residential units instead of renting, whether for investment or end use.
He pointed out that this incentive has accelerated the recovery of the real estate sector after the pandemic, and made the UAE an attractive destination for investors and capital owners.
Mahmoud indicated that the UAE economy is on the right track, noting that the results of the quarterly survey of the Dubai Chamber of Commerce and Industry recorded during 2021 the highest percentage of business leaders’ confidence in the work environment in Dubai for seven years, and this reflects the positive investment climate for the business community in Dubai.
He added: “I expect that the last quarter of this year will witness an increase in real estate sales in a way that this sector has not witnessed before, especially since (Expo 2020 Dubai) will be launched in October, and it will open the way for many investors to seize this opportunity and choose the UAE as a destination for their business, Also, the (Dubai Urban 2040) plan will enhance and support investment in the real estate sector in the coming years.”
For his part, real estate consultant Mohammed Al-Hafiti said, “The government’s initiative to grant long-term residency is an excellent step and will have a very positive impact on all markets, including the real estate market in the long and short term.”
Al-Hafeiti stressed that the length of the stay will make the residents build their plan over the next ten years, or for a period of more than that, because the residence will be automatically renewed, which will have a direct impact on the markets as a whole in improving spending consumption and supporting all sectors, including real estate.
In turn, the General Manager of Al Habtoor Group, Ghaleb bin Kharbash, said, “There are good indicators in the real estate sector, with the support of granting golden residency to a large number of people with specialized skills, as we have witnessed an increase in the demand for real estate in various freehold areas.”
He pointed out that there are expectations of a high demand for offices, in conjunction with the issuance of more commercial licenses, as the wheel of the economy will spin at the rate it was in the past before the Corona pandemic, stressing that this step will benefit and prosperity for all sectors in the emirate.
In the same context, Walid Al Zarooni, Chairman of the Board of Directors of W Capital Real Estate Brokerage, said that “the initiatives of the UAE government are always at the level of responsibility and provide additional support for all economic fields, especially the real estate sector.”
Al-Zarouni stressed that “the decision to grant residencies to about 100,000 programmers around the world, will be one of the factors supporting the continued recovery of the real estate market, and maintains the upward trend in prices, which began at the beginning of this year, as prices rose by nearly 6% during the first half of 2021.” .
He continued, “After the decision to grant residency and the upcoming (Expo 2020 Dubai) exhibition in October, this may encourage a number of real estate developers to launch new projects, taking into account the likely growth in demand, with the entry of categories looking for stability for long periods of up to 10 years. ».
Al-Zarouni added: “A group of newcomers may be tempted by the good return that Dubai real estate achieves at rates of up to 9% currently, and this pushes them to own real estate for the purpose of investment with the length of their stay in the country.”
luxury real estate
For his part, the General Manager of the Royal Liwan Real Estate Company, Mohamed Hareb, said: “There is a tendency by investors to acquire luxury properties and acquire properties whose prices exceed one million dirhams, in order to obtain residency, whether short or long-term, in order to have a foothold in the country. The Emirates to benefit from its commercial and economic advantages.
He added that the availability of services and smart government, and the ease of clearing procedures in Dubai, have an impact now and in the future on attracting more investors to the country, due to government trends and decisions regarding providing a safe and attractive environment for investment.
Hareb pointed out that giving every resident his right in terms of obtaining or acquiring golden residency contributed to the transfer of a large segment of investors, as well as the transfer of capital to the UAE, in order to benefit from these decisions and obtain the facilities and all the amenities, security and safety available in the country.
He added that this matter will have an impact in the near term, i.e. at the end of the year, and also during the next year, as the demand for real estate in general, especially residential villas, whose prices amount to one million dirhams or more, will increase, and we saw during the previous period, the purchase of luxury properties that Their prices are more than 50 million dirhams for residential villas in specific areas, and this is evidence that there is a great tendency by investors to obtain this benefit, which is also in their interest, and is in the interest of the state, because the investment will move many capitals to the state.
FEM Real Estate CEO Firas Al-Masdi said, “The most important thing that distinguishes the real estate sector in Dubai compared to other global real estate markets such as London and others, is that it has a high level of flexibility, that is, it moves much faster than any other country. There is a change or a decision must be taken to change or amend a law or introduce new laws to stimulate the real estate market, as it is done faster than any other real estate sector in other cities competing with Dubai, for example in London it takes three to four years to amend laws.”
With regard to legislation and long-term residency, Al-Masadi added, “The advantage of this matter in the short term is that it is not just a decision or law, it has already entered into force, and there are many who have obtained golden residency and long-term residency, and this certainly has very great advantages, It will help the real estate market, especially the way Dubai deals with the pandemic (Covid-19), as it opened its door to most nationalities from most parts of the world. When expatriates come, the first thing they ask about is the lifestyle, infrastructure and luxury, and is there a long-term residence or not, and certainly there is Significant benefits in the short term, which are tangible benefits we see in the real estate market.”
The real estate broker, Muhammad Al Ali, believes that “the good thought of new residents will tend to own the property instead of renting it, because renting a housing unit for 10 years may match its price, so it makes sense to buy a unit now and sell it at the end of the residence and restore the value of the unit again, This will be a well-deserved investment.”
Al Ali stated, that the residence can be renewed for an additional 10 years, and this will be encouraging to own the property, adding: “What happens for the owners of the residence permits for a limited period of time, for example, between two and three years, that the resident prefers to rent an apartment for the short period he spends in the country and this It is logical, and it is difficult to invest in real estate or make a good profit, because he cannot continue his investment while he is far from the real estate.”
He expected that by the end of this year or the beginning of next year, the clear effects of the decision to grant residency on the real estate market will begin, and during the next year all things will become clear for the new residents and their expected movements and the extent of their impact on the country’s economy.
100 thousand programmers
The CEO of “Harbor Real Estate”, Muhannad Al-Wadiya, said that “the initiative to grant the long golden residency to 100,000 programmers, will have a significant positive impact in the short term by stimulating the market, as well as it will have an important impact in the future to enhance investor confidence and consolidate Dubai’s position.” As the capital and global real estate destination. We at (Harbor Real Estate) have spotted a large percentage of buyers, exceeding 40% of end-user buyers who decided to switch from renting to owning and buying because of this smart initiative.”
He added: “Residency for 10 years will have a positive impact in the real estate sector, and the accompanying change in the behavior of residents in the country, including the tendency to own property as an alternative to renting.” He pointed out that the figures confirm that these initiatives have begun to bear fruit through the high volume of real estate transactions in the country, especially in Dubai, where the number of investments that benefited from residency increased, and this is evidence of the success of this important initiative and the distinction of the UAE and Dubai in attracting investors and buyers wishing to settle in Dubai. .
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