Dubai's Golden Visa: A Real Estate Magnet

Dubai Real Estate Market: Golden Visa Instills Trust in Foreign Investors

One of the largest driving forces in the Dubai real estate market in recent years has been the influx of foreign investors, particularly in the post-Covid-19 period. The high returns and long-term residential opportunities, such as the Golden Visa and retirement visa, make Dubai increasingly attractive to international investors. These programs not only enhance investor confidence but also ensure that tenants remain longer, even if they lose their jobs.

Why do foreign investors choose Dubai?

For foreign investors, one of the most important questions is who their tenant will be if they buy property in Dubai. As it turns out, due to the city's international appeal, most tenants are Indian, Pakistani, Arab, or European citizens. Long-term residential opportunities, like the Golden Visa, contribute to these tenants staying longer, which increases investor confidence.

The co-founder and group CEO of IQI emphasized that long-term visa programs, such as the Golden Visa, Green Visa, and retirement visa, have fundamentally changed investors' mindset. These programs not only ensure the longer-term presence of tenants but also that investors can benefit from the real estate market in the longer run.

Zero Income Tax and Transparent System

Another attractive factor for foreign investors in Dubai is the zero income tax. According to Ansari, Southeast Asian investors are often "astonished" when they learn they don't have to pay income tax in Dubai. Additionally, the property purchase process is transparent, and cash flow operates smoothly in the UAE, providing investors with additional security.

Why are more millionaires arriving in Dubai?

Due to high-yield luxury properties and high property taxes in Europe, more millionaire investors from Asia and Europe are coming to Dubai. The growth in Dubai property prices, which have doubled in some areas, is making luxury properties less accessible to mid-range investors. On the other hand, the market remains attractive to high-income investors, especially those investing in multi-million dollar properties.

Post Covid-19, Indian investors are increasingly favoring Dubai over the UK or Australia. For Indians, Dubai property prices are still attractive, especially when compared to their own country's prices. Additionally, investing in higher-priced properties promises greater returns than cheaper ones.

Changing Market Structure

Over the past four years, Dubai property prices have been steadily rising, and the market structure has changed. Investments in higher-priced properties are becoming more frequent, while properties under 1 million dirhams are more accessible to end-users. Foreign investors mainly invest in properties over 4 million dirhams, while lower price ranges are dominated by locals looking to protect themselves from rising rental prices.

Why is it better to invest in a 2 million dirham property than two 1 million dirham properties?

Higher-priced properties usually yield higher returns and are less sensitive to market fluctuations. Additionally, due to rising geopolitical risks, high-income investors are increasingly seeking safe and stable markets, where the UAE stands out with its business-friendly environment, global trading timezone, world-class infrastructure, and luxury lifestyle.

Summary

The Dubai real estate market remains an attractive destination for foreign investors, especially among high-income investors. Long-term residential opportunities, zero income tax, and a transparent business environment contribute to more investors choosing Dubai over other international markets. The change in market structure and rising prices make investments in higherpriced properties increasingly popular while lower price ranges are dominated by locals. Thus, the Dubai real estate market remains a dynamic and promising area for international investors.