New Government initiatives to boost real estate demand.
Building upon the visa reforms launched in late 2018, the
government has started giving out long term residency
permits called "Golden Card" in 2019. This scheme aims to
provide long term residency for investors and for
exceptional workers in the elds of health, engineering,
science and art. The impact of these various initiatives on
the real estate market are hard to quantify as the exact
conditions for the visas are yet to be made public. While
positive, their impact is likely to be limited. Until Q2 around
400 golden cards have been issued under the regulation and
there is a target of 6,800 to be issued by the end of the year.
Another new regulation that could have a bigger impact is
the issuing of long term residency permits for executive
directors earning a monthly salary of over AED 30,000. The
impact of this initiative will clearly depend on how many
expatriates qualify as ‘executive directors’.
All the new initiatives launched to date aim to boost demand
in the real estate market, with no plans to regulate or more
tightly control the growing future supply. Such moves can be
expected if the demand side initiatives do not prove suf
cient to prevent a further softening in real estate prices and
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