The UAE Cabinet announced on Sunday that upon retirement, expatriates over the age of 55 will be granted a five-year retirement visa if they meet a set of clauses which include either having properties worth at least AED 2M, a minimum of AED 1M in savings or an active income of more than AED 20k per month. The law is said to come into effect starting next year.
This announcement paired with the earlier announced 10-year residency visa and 100% ownership of foreign companies, is expected to boost the real estate transactions in 2019 as many residents seek permanence in the country’s safe and secure environment.
Bayut.com’s CEO Haider Ali Khan said:
“The latest announcement from the UAE government is certainly a welcomed step and should be applauded. The announced regulations will encourage the large expat community here to adopt a more long-term perspective and build lasting roots in the UAE, which in-turn will benefit the economy at large. As far as the property market is concerned, it removes a mental barrier for those looking at life post-retirement and should generate a stronger interest in buying property over renting one. This also would open up the market to retirees from across the world and should bring in new buyers to the market. This is truly a step in making the UAE a home for all.”
According to a study conducted by The Independent, the average age at which people buy property has gone up in the last few decades. In the UAE too, it can be expected to see a larger percentage of senior investors as a result of this new law. The allure of the long-term residency that comes with investments in luxury properties is made sweeter now, since expats can take out home loans with a longer tenure, instead of struggling to make higher mortgage payments over a shorter period of time.
Apart from encouraging retirees to buy properties in the UAE, the move will also promote younger professionals and investors from across the world to invest in the region and truly consider the country as their second home.
As the new law provides an opportunity for property owners to extend their stay with a five-year visa post-retirement, we expect more retirees to take advantage of this specific clause than all the others, because of the ROI, financial benefits and the peace of mind that comes with owning a piece of real estate in one of the most popular countries in the world. It is a refreshing initiative by the UAE government which will create more buyers for the property sector, resulting in an increase in sales and development endeavours.
Another leading figure of the UAE real estate industry Firas Almsaddi, CEO of FAM Properties, had this to say about the new law:
“When I saw the new announcement of the visa or the previous ones that took place a few months back, I notice them all rooting towards a better approach for easing the way for investors and foreign investment to come to the country. The government is doing its best to make sure the UAE stays and progresses in the real estate sector, the way they’ve planned it.
Although the visa announcement does not relate to everyone in the country and will not contribute towards a change of life for everyone, the fact that these initiatives will continue to come, shows the government’s commitment and dedication in their efforts to revive the property market.”
Announcements like these prove how the government of the UAE is committed to build a country that stimulates growth with emphasis on the improvement of lives so that anyone can confidently call the UAE as ‘home’.