A survey of UAE investors and residents reveals that the recently implemented UAE Permanent Residency Scheme has created a positive sentiment in the investment community.
A data sourced from 1,012 respondents by Lootah Real Estate Development indicates that existing investors have more appetite to increase their portfolio, while would-be investors are now more open to start investing.
Nearly four in five (79%) of UAE investors said that the launch of the Permanent Residency Scheme (golden card), has persuaded them to consider expanding their investments in the country.
Meanwhile, 68% per cent of UAE-expat investors said they plan to grow their investment portfolio by investing in property, more specifically in properties located in Dubai.
Property leads the investment class option, followed by business (26%), and stocks (4%).
Of those who expressed interest on property investments, 79.7% said that they prefer investing in Dubai.
The optimism also extends to those who do not have investments yet. As per the survey, among the 819 respondents who are not yet investors, 29 per cent said that they will consider investing in the UAE because of the permanent residency scheme.
Saleh Abdullah Lootah, CEO at Lootah Real Estate Development, said: “The growth in the number of expats who are interested in real estate investments signify that they are becoming more confident of the market.
“The property sector is one of the major sectors that drive the UAE economy and the shift of their mindset to buying from renting is definitely a great boost.”
Aimed at boosting UAE’s business economy, the scheme allows property investors with a gross value of at least AED 5million, expatriates with investments worth at least AED 10million, and entrepreneurs with an existing project amounting to AED 500,000 or more to stay in the UAE longer.
As part of the special talent section, personnel such as executive directors or senior management with a bachelor’s degree, five years’ experience in the UAE region and a monthly salary of AED30,000 will be eligible for a 10-year visa, too.
“The permanent residence visa is a great initiative by the government to stabilize the country’s economy, most especially the real estate market,” Lootah added.
“An increase on the interest of foreign investors and expatriates in buying properties in the UAE is expected which will eventually drive the real estate sector to a boom.”
Results also attributed increased interest of investment in property to Expo 2020, which is expected to yield a AED 122billion investment windfall for the UAE.