8 benefits of devaluing property to obtain residency in Dubai
30 Sept 2021, Zawya – zawya.com
Real estate expert Walid Al-Zarooni observed eight benefits for the Emirate of Dubai’s approval to amend the terms of entitlement for real estate owners to reside an investor for a period of 3 years, renewable, by reducing the minimum value of the property to 750,000 dirhams, compared to one million dirhams in the past.
Al- Zarooni, who is the Chairman of “W Capital”, the real estate brokerage, stressed the fact that the legislative regulatory moves of the Emirate of Dubai support the real estate sector and revive the expected demand, as well as the great momentum experienced by the market since the beginning of 2021.
Recently, the Dubai Land Department reduced the value of the property needed for the investor to obtain a 3-year renewable residence permit, from one million dirhams to at least 750,000 dirhams, with the possibility of sponsoring the husband or wife and children.
The department stated that the “Tasken” program allows a real estate investor who owns a property the value of which is equal to, or greater than 750,000 dirhams at the time of purchase, to apply for a three-year residence visa.
The benefits of the decision, according to Al- Zarooni, include:
1- Increasing the base of real estate investors. The new update carried out by the Dubai Land Department will undoubtedly increase the base of real estate investors wishing to invest in real estate in Dubai, which is characterized by investment attractiveness in general, especially since there is a largenumber of people willing to invest and is still hesitating, and such a decision helps the vast majority of them.
And the real estate market in Dubai is still robust thanks to a number of factors that make the investment climate in the emirate attractive in the long term.
2- Absorbing the real estate oversupply.
The decision absorbs the real estate oversupply to a large extent, especially the middle-class real estate that is commensurate with this decision, where price ranges from 750,000 dirhams to one million dirhams.
3-Introducing new projects
The move helps launching new projects by real estate developers targeted by this decision. The developer will focus on launching economy projects with the same decision budget, starting from 750,000 to 1.5 million dirhams.
4- Motivating the real estate finance sector
The decision contributes to moving the real estate finance sector, because currently the investor can buy a property and finance it through the bank by 50%, then the investor pays the rest of the amount and at the same time get an investor residency for 3 years. So the banking sector will be active and busy financing the new projects.
5- Re-renting the property unit and getting returns
The beneficiary will have double- sided investment. The investor can buy a property worth 750,000 dirhams, and obtain a 3-year residency at the same time, he can rent the property and benefit from the rental return.
6- Supporting and enabling the investment environment
The decision is of great importance, as it came within the great efforts made by the Dubai government to support and enable the local investment environment as a major contributor to the national economy. That will be a major attraction for capital, added to the basket of incentives and precautionary measures that were announced during the spread of the “Covid-19” virus, which contributed in restoring rate of growth and activity to its pre-pandemic levels in various sectors.
7- Increase the population
The decision will motivate a large number of people wishing to live in the emirate, especially families, to realize their dreams of working and living in Dubai.
8- Supply and demand equilibrium
The decision helps to achieve a balance between supply and demand, and reduce the pressure of the current supply, and thus this will contribute to price and renting recovery ,while increase the value of real estate assets owned by investors .