How UAE five year tourist visa is going to boost the Real Estate sector

January 8, 2020by Blythe & Company1

It’s finally the year of EXPO and decisions to make visitors experience seamless have started rolling in.

His Highness Sheikh Mohammed bin Rashid Al Maktoum, the Vice President and Prime Minister of the UAE has announced the long term UAE visa this week and the UAE is already getting positive response from investors globally. The multiple entry visa will be valid for five years and visitors will be allowed to stay up to six month on each entry. Although, it looks to be centred around tourism as it help cut cost of visa application and boost the tourism sector, people can now travel last minute without having to repeat the visa application process. However, the ultimate target and winner of this initiative is the real estate sector.

Dubai economy is growing and a lot of projects are constantly launching and getting delivered. Until now, seasoned investors especially the ones that have bought into residential real estate were dependent on long-term tenant which are mostly residents. This has however changed with UAE welcoming Airbnb and short term rentals to the region. It has given investors some flexibility in terms of managing their assets. However, due to the 1-3 month validity of UAE visas, visitors couldn’t stay in the region longer if they wanted to which placed a limitation on renting out properties.

With the new initiative that has been brought forward, not only will investors benefit from it by renting out their properties but the hassle of always renewing their visa when they want to visit the UAE has been lifted off their shoulders. The only Investors qualified for an Investor’s visa are those that have made a minimum Investment of AED1million. With the new five year visa, every Investor qualify.

Also, a lot of travellers come to the UAE with the hope of testing the job market to see if there is a chance of staying and furthering their various career in the region. The one to three month visa wasn’t enough for them to explore the job market which has led to people giving up on their dreams of living in the UAE due to the high cost associated to exiting and re-entering the country that ultimately leads to demotivation. With the new five year tourist visa, tourists can stay up to six month which will then give them enough time to explore the region, find a job and make the big move. This will be a great benefit to investors as people can now rent out their properties bi-annually and add to the ultimate return on investment (ROI).

During the third quarter of last year, Dubai launched a virtual licence that enable oversea entrepreneur and non-resident business owners register their business in the UAE. The long term tourist visa will give them the opportunity of coming to the UAE for a longer period to learn the ropes and explore the possibility of moving their businesses to the region. Subsequently, this will have a positive impact and a multiplier effect on both residential, commercial real estate and the overall economy.

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One comment

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