Is Awarding Permanent Residency Enough to Wake Up Dubai Real Estate Market?
Real Estate is the most significant contributing factor in Dubai economy. But however, it is facing a slowdown time for some years now and the government is fully aware of this bad situation. In order to resurrect the dubai real estate market, authorities have started giving permanent residency to expats. This initiative will not only recharge the real estate wheel, but it will take it to new heights. Property experts were already very optimistic about the expo 2020 now this permanent residency announcement will surely make them happy. One property manager told that you will see the big boost in prices of residential properties, offices, restaurants and commercial properties in the upcoming months. Here are some of the major benefits that can drive from this policy:
Expats Will Consider Dubai As Their 2nd Home
Expats are a considerable part of this city and it will encourage them to invest in the city real estate more once they know that they can get permanent residency. For example, Indian expats compromise on 30% of the 10 million dubai population. Even if 5 to 10% make a decision to stay here it will boost the real estate market in nights. What makes people to not invest in property in dubai? The idea of not being a permanent resident of this city. That is why they invest their money back in their homeland and buy property there. Property management companies Key One Properties think this is a great move to lure expats to buy property here.
Business Will Boost
The demand for commercial spaces will get an immense boost after implementing the policy. Right now, most business owners are expats and they are using dubai as a sales office to attract business. After the announcement, they will shift their headquarters to dubai, hence it will increase the demand for commercial spaces. Renting properties will also face a huge boost once so many new expats lands here. Real estate companies will again start new real estate projects and communities to fulfill the demand.
Property Affordability Is Must
One thinks that will stop expats to make dubai their permanent home is the high price of the property. If somebody wants to shift their family and buy a home for their stay, he needs affordable property rates so that he can invest without any worry. Sky high rates of property prices are a big no and can kill the future of real estate dubai. So, the government should make sure that there will be affordable housing communities for expats.
Gold Card Scheme
Gold card scheme is suitable for business families with high income or high salaried individuals. But these are enough people to add life in the dying real estate market in dubai. Affordable communities even enable the mid-income group to buy a property and settles here. In the future, i hope the government will introduce more policies like this so that even a mid income group can also get a huge benefit from it.
I think 2020 is the deciding point of dubai future and all signs are in a positive direction. Dubai economy is still going at a good rate and after expo 2020 it will enter into another dimension. Real estate companies in dubai are predicting 1st of 2021 will be a new era of dubai real estate and after that, there is no going back.