Long-term residential programs such as Golden and Retirement Visas ensure that tenants remain and the property will remain occupied for longer periods of time after the tenant loses your job, so wealthy foreign investors are particularly fascinated to invest more in the Dubai real estate market.
Foreign investors were one of the most important drivers of Dubai’s real estate market gatherings, particularly in the period after Koviden and 19, attracted by the high returns from unplanned projects.
“The most common question that foreign property investors ask when buying property in Dubai is ‘Who will be my tenant?’. For example, tenants in the Philippines and Vietnam are locals. So they inquire who will be their tenants in Dubai. We inform that it would be either Indian, Pakistani, Arab or European nationals. They want strong connectivity with tenants. Therefore, these long-term residency programs such as Golden Visa, Green Visa, Retirement Visa etc. are boosting foreign investors’ confidence because they know that their tenants will not leave if they lose their job,” said Ansari.
“We tell investors that these tenants have been living for decades and Golden Visas allow them to live in Dubai and UAE for longer periods. These long-term residency programs are changing investors’ mindset and provide great confidence to invest in Dubai,” Ansari told Khaleej Times.
An online real estate company with over 50,000 real estate professionals processed transactions worth US$5 billion last year.
Ansari said investors from Southeast Asian countries were also surprised when they were informed of taxes with zero income in Dubai.
“They are amazed when they come to know of zero-income tax. Secondly, they are attracted to invest because the process to buy and sell property is very transparent as well as bringing funds in and out of the UAE is also very smooth through a transparent banking system,” he added.
Why are more millionaires coming?
Ansari said more luxury property offers, taxes on European property and higher returns from more favorable prices than other major cities around the world are increasingly moving from Asia and European countries to Dubai.
He added that billionaire buyers will flock to Dubai on property as a consistent rise in real estate prices, more than doubled in some communities, has led to many properties that go outside the budget for midterm investors.
Property prices have been rising for the past four years. The rally began as soon as Dubai, one of the first cities to reopen following the Covid-19 lockdown, welcomed international tourists and investors.
“These are interesting times in the Dubai property market. The big investors are coming in for the high ticket price. There are always buyers for properties priced more than $1 million. For example, Indian investors used to prefer the UK and Australia. After Covid-19, Indians are willingly buying $2-$3-million ticket homes because when they compare it with the prices of their country, prices in Dubai are very good,” said Kashif Ansari, co-founder and group CEO of IQI.
“Property prices in Dubai have more than doubled, therefore, more high-net-worth individuals or millionaires are coming to Dubai instead of low and mid-ticket investors because prices are not within their range,” he added.
He noted that Southeast Asian investors were “surprised” when they were informed of Dubai’s investment and returns compared to other Asian markets as prices inflated in other cities.
End-users below Dh1 million
According to the CEO, investors have $1 million and have an appetite and avenue, as they are increasing the number of investors under $1 million, which is less than DH, less than DH, less than DH, less than DH, less than DH, less than $1 million, to under $1 million.
“Now, in the price bracket of Dh1 million, most buyers are end-users to protect themselves from rising rentals. Meanwhile, foreign investors are investing in the price bracket of above Dh4 million,” added Ansari.
He advised that investors can achieve better returns by purchasing a single property of two or more properties, each with a million icons.
“In a world of heightened geopolitical risk, high-net-worth individuals increasingly seek secure, stable jurisdictions, and the UAE stands out. It offers a business-friendly environment, a global trading time zone, world-class infrastructure, and a luxury lifestyle,” said Ansari.
