16 09 2020

Prospects for commercial and residential real estate in the UAE

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We are now seeing a tangible increase in developers selling commercial and residential real estate using a “deferred purchase and sale” agreement. By using such an agreement, the buyer has the full right to settle up to 100% payment. The buyer lives in the purchased property and pays the agreed installment amount within the agreed period.

A pending contract is registered by the Land Department. After the buyer fulfills all the necessary requirements in accordance with the concluded agreement with the developer, namely, pays 100% of the payment amount, both parties apply to the responsible Department with a request to amend the agreement of intent to the title deed related to the buyer.

The spread of measures to combat coronavirus has affected the residential and commercial real estate market, which, according to forecasts, will gradually recover, and the growth rate will increase in direct proportion to the proximity of the opening of Expo 2020. Growth is expected both before and after the start of the show.

The introduction of long-term visas for a period of 5 years, which relate to the list of persons, will contribute to the reanimation of the real estate sector:

- investors investing in the real estate sector;

- public sector investors;

- businessmen and entrepreneurs;

- scientists, as well as people with special talents and knowledges;

- successful students.

A visa for a period of 5 years can be issued by investors investing in the United Arab Emirates. Subject to certain conditions can be:

- the amount of investment from 5 million dirhams;

- the investment amount must not be purchased using credit instruments;

- the object must be in the investor's property for more than 3 years from the moment the investor obtains a resident visa to the United Arab Emirates;

- the investor should not be subjected to any claims that reduce his possible solvency below the level of 10 million dirhams;

- availability of health insurance, both for investor and his family.