The Dubai Gold Card Visa Residency System has proven to be a game changer for the property market in the United Arab Emirates (UAE). This new regulation has created more demand for properties and has improved the overall market by millions. This is a direct result of the introduction of a new system which makes it easier for foreigners to purchase property in the United Arab Emirates (the UAE) under the right type of conditions. Whether you are an investor or a home buyer looking for a property at villas for sale in Dubai, this system can change your property investment opportunities forever.
The property market in the United Arab Emirates (UAE) remains one of the most competitive in the world. However, the recent global economic and financial crisis has made property buyers in the UAE take a long hard look at the market. While many countries have experienced a decline in the number of properties for sale on their markets, the UAE real estate market has remained virtually stagnant over the past few years. This means that while competition within the property market is high, the rate of return on investment (ROI) is relatively low.
In order to boost this return on investment, the government of Dubai has introduced a new type of visa-residency program. Known as the Gold Card, this new program allows foreign investors to purchase property without having to remain in the country for the duration of the property purchase. This allows investors to save on the cost of renting out a property, while still gaining access to the property market in the country. The benefits of this program are not only limited to the foreign investor; it is also beneficial to both the UAE government and its citizens.
The Gold Card Residence program is an attractive option for both investors and homebuyers. Unlike the UAE program, the resident permits the property purchased to be used as residential use only. This eliminates the need to obtain a full-ETA visa, therefore, investors will not be required to leave the country during the purchase. Additionally, investors will not be required to prove a full employment or citizenship status in order to purchase a property in Dubai. All three factors make the Gold Card a game changer for the property market in the country.
While this may seem like an easy decision for investors considering purchasing property in Dubai, there are some drawbacks to the new system. One of the first negatives to the Gold Card is the lack of currency exchange experiences for the majority of individuals obtaining the new property. When purchasing property in a new country, it is important to know that the exchange rate of that country’s currency will be very different than that of yours. This difference could mean large profits or losses for your investment, so you should do your research before investing. While the Gold Card may offer a quick method of converting funds from one currency to another, it is important to understand that the potential losses involved could also make it a poor investment for those unfamiliar with the current foreign currency markets.
Another negative to the Gold Card is the lack of investment capital available to the general public. The top real estate companies in Dubai is currently saturated with new properties for sale and those who are interested have limited access to capital to purchase property. Because the Gold Card is only provided to qualified individuals, investors must apply for a visa to be issued a property. This process requires a lot of patience and is not meant for individuals without strong credit ratings. For those with strong credit, however, the opportunity to purchase new property through the Gold Card can be a dream come true.
Because the Gold Card is a controlled non-immigrant visa and will limit the amount of money that can be invested in real estate, most investors expect a substantial drop in the price of new properties. However, there are a few signs that the value of the Dubai property market has been inflated by the recent economic crisis and that the value will soon return to normal levels. One indicator that investors should take note of is the number of hotel rooms that have been built in the city recently. Many of these hotels are being constructed by international construction companies who are experiencing reduced operating expenses due to the global economic crisis. While these projects will not dramatically affect the price of properties for sale on the secondary market, they could significantly reduce the price of newly constructed hotel rooms.
As the Gold Card lapses, or remains in effect until an anticipated increase in visa applications occurs, there is an opportunity for investors to purchase real estate before the value of the currency fluctuates. If an investor wants to purchase property during normal times, the value of the new properties available on the secondary market will likely decrease, making these investments less attractive. However, if you act quickly when new properties become available on the secondary market, the value of the real estate available for purchase can increase, thus increasing your investment in the property market. The Gold Card is a temporary investment scheme that may not provide a significant return for your time and money, but it is a game changer for the property market in Dubai. For more information on how an individual can obtain full benefits from the Gold Card, as well as valuable tips on how to get the most for your money, contact a specialist today.