Dubai real estate: Anticipated Investment Surge Triggered by Off-plan Property Supply and UAE Golden Visa Rule Modification
ZāZEN Properties, a prominent real estate developer in Dubai, has highlighted that changes in the UAE Golden Visa rules are expected to generate additional interest in the property market.
Analysis conducted by ZāZEN Properties reveals that the UAE real estate sector experienced sales totaling $124 billion last year, primarily fueled by off-plan property purchases in Dubai.
ZāZEN Properties predicts that modifications to the Golden Visa rules and changes in property supply will further enhance off-plan real estate sales in Dubai.
Despite the completion of over 60,000 units, the off-plan property segment has witnessed continuous growth for four consecutive years. Demand continues to outpace supply, driven by the rapid population growth of the city, ranking it among the fastest globally, according to ZāZEN Properties.
Dubai Real Estate Outlook
Together, the off-plan property segments of Dubai and Abu Dhabi significantly contributed to the overall real estate market in the UAE, surpassing AED455.7 billion ($124 billion) in sales last year.
Dubai, particularly, stood out, benefiting from a thriving tourism sector that increased housing demand and saw off-plan sales reaching a value of AED160.46 billion ($43 billion).
This represented a remarkable 72.3% growth compared to the AED93 billion ($25.3 billion) sales value recorded in 2022.
In addition, 68,783 off-plan sales transactions were recorded in 2023, marking a 59.4% increase from 43,151 in 2022, representing the highest annual performance for this segment to date.
Recent reports indicate that the UAE has eliminated the AED1 million ($272,294) minimum down payment requirement to qualify for a golden visa through real estate investment. This change is expected to open doors for thousands of investors, making it easier to access the country’s popular Golden Visa program.
This incentive is not only projected to benefit the nation’s economy but is also likely to play a pivotal role in boosting the UAE’s real estate sector value. It is anticipated that developers will accelerate their construction pace, building on the already unprecedented growth.
Madhav Dhar, Co-founder and COO of ZāZEN Properties
Madhav Dhar, COO and founding member of ZāZEN Properties, expressed his perspective: “The UAE’s visionary decision to eliminate the AED1 million down payment requirement for the golden visa program will strengthen Dubai’s real estate landscape.
“This bold move not only enhances accessibility for current and new investors by enabling them to cement Dubai as their secondary home or primary base but it also injects fresh vitality into the market by allowing them to take advantage of world-class infrastructure and global connectivity.
“By facilitating easier entry for investors and stimulating demand, the UAE has positioned itself as a global leader in fostering a resilient and competitive real estate sector.
“This forward-looking policy underscores the country’s dedication to innovation and growth and we anticipate this change to have a profound and positive impact on the industry, paving the way for a new era of opportunities and sustainable development.”
ZāZEN Properties is targeting the mid-market while ushering in a new era of sustainability and contributing to key initiatives like UAE Net Zero 2050 and the Dubai 2040 Urban Masterplan.
The homegrown brand’s latest development, ZāZEN Gardens in Al Furjan, will become the first LEED Gold-certified and Well-Being integrated residential development in April 2024.
Annually, it will reduce 469 metric tonnes of carbon emissions and generate close to 390,000 kWh of onsite solar electricity, which is about 30 per cent of the common area requirement yearly.
Publish January 31, 2024
Source: https://www.arabianbusiness.com/abnews/dubai-real-estate-off-plan-property-supply-and-uae-golden-visa-rule-change-to-spark-investment-boom
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