The real estate market in Dubai has performed surprisingly well as the world’s economies continue to recover from the novel Coronavirus, and the value of the total sales transactions registered with the Dubai Land Department reached AED16.10 billion (roughly US$4.4 billion) between 1 January 2021 and 7 March 2021.
Global investors have generally been actively seeking to diversify their real estate holdings, with Dubai being one of the best places to invest during the epidemic. The Dubai Land Department (DLD) announced the easing of two kinds of resident visas for the property owner and his or her dependents in 2019. This announcement opened up an exciting new way of life and increased the appeal of real estate investment in Dubai.
Residency Visa: What Is It?
The property purchase Residency Visa is intended for high net worth foreigners who want to buy a home in Dubai and become residents there. Investors can now apply for a three-year or five-year property residence visa with the help of DLD.
As long as the property ownership is maintained in accordance with current regulations, the property owner is allowed to apply for a residence visa for himself or herself as well as his or her direct dependents (spouse and children).
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Visa Requirements for Residents
According to the DLD, the following criteria must be met in order to be eligible for a residency visa:
The owner of the property is the sole person owner of the property. Or to put it another way, ownership through a corporate entity disqualifies one from applying for a residency visa.
A title deed issued in the owner’s favour by the DLD is required as proof of total ownership of the property. A five-year Residency Visa cannot be granted to a person whose property was financed; as a result, off-plan property buyers are not able to apply for one until the building is finished. The owner can apply for a visa after the property is free of all liens, such as mortgages.
The property owner will need to be present in Dubai in person for the visa application, and the issuance of a power of attorney to an authorized representative will not be accepted. However, in the case of the three-year Residency Visa, the property owner is eligible to apply as long as he or she can show that either 50% of the loan amount has been settled or at least AED 1 million has been paid to the mortgagee bank or to the seller.
After Issuance of Visa:
Following the issuance of the residency visa, DLD will record a restriction over the indicated property that will serve as notice that it was acquired for the purpose of obtaining a residency visa. The restriction’s main goal is to protect the minimum investment requirement by preventing the investor from selling the property while the visa is still in effect.
As a result, the DLD will terminate the residency visa if the investor decides to sell his property while the visa is still in effect unless he can find a buyer for it. All UAE visas have a basic condition that the property owner must be present in Dubai at least once every six months to maintain the status of the property.
What to look for in near Future?
In the future, Dubai will likely continue to hold the top spot as a desirable location for affluent investors to secure property investment visas, which are now subject to modest requirements and don’t even call for a language exam. The Dubai Residency Visa choices provide a fantastic chance for possible tax savings and a luxurious lifestyle with plenty of sea and sunlight at a time when several nations are considering hiking their taxes on the rich.
The Dubai government announced Emirati citizenship for several groups in 2021, including real estate investors and the people who depend on them. These citizenship criteria, which are distinct from those for the investor visa, will be covered in another Law Update article in the near future.
Read also: Gifting Property in Dubai
