There’s no doubt that the UAE’s recent decision to make changes to long term residence visas will have a big impact on the property market in Dubai.

The new rules will mean that residence visas will be up to ten years, and 100% foreign ownership of companies will be allowed. This will impact not only commercial property, but also residential. Currently, many ex-pats have chosen to rent in Dubai, but this opens the door to buying property and settling down long-term.

Changes to visa

At the moment, the property visa issued to a property investor in Dubai is for a freehold valued at more than Dh1 million and has to be renewed every two years by the Dubai Land Department (DLD).

There is also a six-month residency visa available, which is issued by the specific immigration authority. It applies to property purchased across the whole UAE, and not just in Dubai.

Positive for economy

It’s thought that the changes recently announced to residency visa regulations will have a positive effect on the whole of the region’s economy, but particularly on the real estate sector. It will give investors the chance to become semi-permanent residents and is likely to drive more domestic demand for both commercial and residential property ownership.

Investors from overseas are, along with UAE nationals, massive drivers of demand for property in Dubai. According to the DLD, foreign investment in Dubai property amounted to Dh56 billion in 2017. Indian nationals invested the most at Dh15.6 billion, followed by Pakistanis and British investors who invested Dh5 and 6 billion respectively.

Increase in investment

The UAE has been clear that it’s looking to increase its community of property investors. These changes will attract many more, along with a consistent flow of foreign direct investment. The move has cemented the UAE’s image as the most investor-friendly country in the region. It has long been seen as a safe haven for property investment, and this just adds to its position as a tolerant and comfortable living environment for investors who want to call Dubai home.

Indirect effects of the changes are likely to include population growth, more confidence in the property market as a whole and an increase in expat buyers. They’re likely to invest in their homes in Dubai and the UAE, rather than repatriating money to their home markets. All of which is very positive for the future of the UAE’s economy.

Committed government

The decision also shows the clarity with which the government is committed to deliver a balanced economy, where growth is no long simply underpinned by oil.

It’s likely to be seen as a game-changer for the real estate sector in Dubai. When the visa residency initiative was introduced in 2002 it sparked a freehold boom and these changes are likely to do the same again. The ten-year residency visa will be seen as fundamental to the growth of the property sector in Dubai and the UAE.