Introduction
Today, the United Arab Emirates (UAE) is witnessing a remarkable surge in its real estate sector. The array of luxury apartments, villas, offices, hotels, and houses available for sale in the UAE continues to captivate international high-net-worth individuals (HNWIs) and investors alike. The recent development adds to this appeal: starting from 2023, property buyers can qualify for UAE residence visas lasting 2 to 10 years. The duration of these visas depends on the value and location of the UAE properties they invest in.
A Flourishing Real Estate Market
In 2022, the UAE experienced an astonishing surge in real estate transactions, with property sales in various cities surging by over 60%. Experts in the field anticipate a further uptick in UAE housing prices, with an expected increase of up to 13.5% in 2023.
Popular Dubai Destinations
Dubai, the crown jewel of the UAE real estate market, takes the lead in this growth story. The cityscape is constantly evolving, with new apartments, residential complexes, and houses developed for sale. Several districts in Dubai stand out as the most sought-after destinations for property buyers, whether for investment or permanent residence:
- Business Bay: Renowned for its dynamic urban lifestyle and modern skyscrapers, the area is an attractive hub for business professionals.
- Dubai Marina: A vibrant waterfront community offering stunning views and a luxurious lifestyle.
- Al Safa: A well-established area known for its tranquility, green spaces, and convenient access to various amenities.
- Palm Jumeirah: An iconic man-made island famous for its luxury villas and beachfront living.
- Downtown Dubai: Home to the world-famous Burj Khalifa, this district offers a variety of luxury living, high-end shopping, and entertainment options.
UAE Real Estate Opportunities
It’s crucial to note that our property listings in the UAE encompass not only luxury apartments and villas but also houses and hotel rooms in Dubai that are available to purchase directly from developers. Also, it is crucial to remember that foreigners can buy or lease some UAE property for 99 years. You can rent a building in the Emirates, but the land under it belongs to the state.
Real Estate Market on the Rise
Dubai’s luxury real estate market is experiencing one of the most significant price hikes globally. The luxury housing market in Dubai is still expanding in 2023 due to the increasing construction of new apartments, residential complexes, and houses for sale. According to market analysis, prices for luxury properties in Dubai are expected to surge; they may reach an astounding 50% increase by the end of 2023.
Beyond Dubai, in the broader UAE real estate market, including areas outside Dubai, residential and commercial property prices are projected to grow by approximately 2% in 2023, reflecting the market’s resilience and continued appeal to investors. Follow the link for more information about buying property in the UAE.
New Rules for Obtaining UAE Residence Visas through Buying Property in 2023
The UAE government introduced investor visas back in 2019, initially designed for buyers of elite properties in the Emirates. These long-term UAE investor visas, often referred to as ‘Golden Visas,’ were granted to individuals who made property investments ranging from 5 to 10 million dirhams (AED). However, in 2022, the UAE government revamped these regulations and launched a new Residency by Investment (RBI) program.
Key Visa Features for Property Buyers in 2023:
- Unlimited Travel: Holders of UAE residence visas can travel outside the UAE for an extensive period of time and return at their convenience.
- Family Sponsorship: The visa allows for the ‘sponsorship’ of family members, facilitating their visa applications if the applicants meet specific property investment criteria.
- Flexible Financing: Applicants can use a combination of personal funds and loans/mortgages to make the real estate purchase.
- Investment Thresholds: Investment thresholds for UAE real estate that qualify for specific types of residence visas include:
- AED 2 million (USD 545,000) for the renewable 10-year ‘Golden Visa.’
- AED 750,000 (USD 204,000) for the 2-year UAE residence visa.
- Retiree Benefits: Foreign retirees aged 55 and above can secure a UAE residence permit for up to 5 years by investing in freehold apartments worth AED 2 million.
Property purchases in the UAE can grant investors an investor residence visa in 2023 within nine investment zones in Abu Dhabi and approximately 50 freehold zones in Dubai.
Benefits of UAE Residence Visas:
The advantages of acquiring a UAE residence visa through property investment extend far beyond the mere right to reside in this thriving nation. Here are some key benefits:
- Family Security and Savings: The UAE’s political stability and hospitable environment for immigrants provide a sense of security for families.
- Travel Flexibility: Holders of residence visas do not need to live in the UAE permanently. Visa holders are at liberty to travel in and out of the country without restrictions. To retain their residency status and the right to stay in the UAE, a visit to the country every 1 to 2 years is sufficient.
- Tax Benefits: The UAE offers a highly attractive tax environment. It does not levy taxes on income, capital gains, inheritance, gifts, or property. Moreover, as of 2023, the corporate income tax rate is a mere 9%, provided that the total income exceeds AED 375,000. These favorable tax conditions enhance financial growth and prosperity for UAE residents, enabling them to protect and maximize their wealth.
- Banking Services: UAE residence visas received through property investment provide the privilege of opening bank accounts.
Conclusion
The United Arab Emirates real estate market presents a thriving opportunity for investors and individuals seeking a new place to call home. With soaring property demand, construction projects, and favorable residence visa options, the UAE’s real estate sector is flourishing. Whether for investment or personal use, exploring this dynamic market can provide various benefits, including long-term visas and access to a range of amenities and services. Please contact our experts to tap into the potential of UAE property investment and residence visas in 2023.