The extension of property investor visas from six months to three years in UAE has resulted in sudden surge in number of properties worth Dh.1million or more say latest reports.
As per the latest regulation, only investors with properties worth Dh.1million or more are eligible for such a visa. But despite the lack of clarity in the regulatory structure of the visa, the owners and brokers with properties in the range Dh.800,000 to Dh.900,000 are pushing up their properties into the Dh.1mn bracket, reports Kuwait Financial Centre (Markaz).
The report states that investors with properties that are marginally lower than Dh.1million, and are actually aiming to sell them, will now be able to take advantage of the regulation by loading up the price to Dh.1mn so that properties qualify for the extension.
Markaz reports that 81 percent of all real estate listings in Dubai were more than Dh.1mn, while in Abu Dhabi it was 86 percent. There has been five percent rise in properties worth more than Dh.1mn in Dubai in a single day.
According to Markaz, the extended visa will also benefit project developers, with projects that are still under construction, as they can persuade investors to continue paying instalments, as they can increase the sale perception of the properties on completion.
The report further pointed out that this regulation will bear a positive impact on business, economy and for the society in general.