Will UAE easing of expat restrictions restart the upscale property market

Will UAE easing of expat restrictions restart the upscale property market

Will UAE easing of expat restrictions restart the upscale property market

Will the UAE’s new 10 year residency visa and 100 per cent foreign company ownership law boost the emirates’ real estate sector?

The UAE’s real estate sector is hoping the two new initiatives will provide a boost for house prices as well as increased activity in the market, but is the sector being too optimistic as only a relatively small number of expats will be affected by the new rules. Apparently the devil is in the detail of the new relaxations in foreign residency and business ownership laws, which aren’t even expected to come into use until the end of this year.

At the present time, a good number of expat professionals already own their own homes, although an increase may be seen in the number of those feeling more secure about settling in the region with their families. Taking out a mortgage may be seen as less of a risk, which is good news for the real estate market as well as the banks. Even so, buying a home anywhere in the world is still a major decision, as predicting the direction of the property market at any one time is a tricky objective.The difference may be in the allowing of expat businesses outside the free zones, especially as Dubai has been offering 100 per cent expat ownership of companies for several decades and even healthcare and education already have free zones.

A more persuasive argument for taking on a mortgage might be that, at the present time, local house prices are attractive at entry level. House prices track oil prices, with around a six-month time lag the norm. Oil prices have now recovered from their recent all-time low, and the Trump abandonment of the Iran nuclear deal is set to stimulate upward pressure by the end of the year. At this point, anything which persuades expat professionals to stay is being viewed as a positive for the real estate market, particularly at its upper end which has been hit hard by mortgage lending restrictions.

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