Why Dubai is a popular destination for second homes

Dubai has cemented its position as one of the best cities for expats due to its high-quality lifestyle and safe environment, according to a latest survey.

Referring to the survey conducted by InterNations in which more than 12,000 members participated, Zoom property Insights noted in a report that Dubai has become a popular second home destination for expatriates due to its excellent infrastructure, successful strategy to manage the pandemic, and the introduction of visa and labor reforms.

Devesh Mamtani, Chief Market Strategist, Century Financial, said the UAE has a very diverse culture due to the large amount of foreign population in the country.

“It attracts people from all parts of the world to work as skilled expatriates. This modern immigration has created a multicultural environment. Additionally, the UAE is only a few hours flight away for citizens staying in Europe, North America and Southeast Asia,” he said.

Mamtani said the country ranks high on the economic, social and health stability metrics available to residents, which is an ideal incentive for expats to treat Dubai as their second home.

The emirate’s stable economy, which is expected to grow by 4.5% in 2022, is one of the main reasons expats choose Dubai as their second home.

The country has begun its journey towards a full recovery from the pandemic and is carrying out vaccination campaigns and taking precautions to keep its residents safe.

“Economic diversification has recently been a priority for the UAE government and oil and non-oil growth is driving the recovery. The International Monetary Fund (IMF) doubled the UAE’s GDP growth outlook in its latest World Economic Outlook. Amid the pandemic, the UAE offers a stable economy, motivating individuals to move to the region,” Mamtani said.

The UAE Central Bank previously forecast the economy to expand by 4.2%, against an IMF projection of 3.5% real GDP growth for 2022, while Japan’s largest bank MUFG predicted growth by 4.9% in 2022.

Additionally, the emirate’s position as a business hub in the Middle East attracts many international organizations that set up shop here to expand their presence in the region. This creates plenty of job opportunities for expats, as only one in 23 workers in Dubai is an Emirati national, according to calculations by Breakingviews.

Visa reform, a game changer

Zoom Property Insights noted that the low tax base, safety, diversity and remarkable infrastructure are some of the reasons attributed to Dubai’s popularity among expats. However, the latest labor and visa reforms have changed the game, as expats now have many options for long-term renewable visas in a flexible working environment in the emirate.

Highlighting how visa reforms are changing things in Dubai, Ata Shobeiry, CEO of Zoom Property, said Dubai has always been a favorite destination for people, looking for a home away from their homeland. However, some people were reluctant due to the lack of permanent residency in the emirate.

“Things are changing at a rapid pace since the visa reforms were announced last year. The availability of gold and silver visas has changed the minds of many people who are now considering buying property in Dubai and choosing it as their second home,” he said.

In addition to the recently introduced long-term visas, federal institutions have introduced green visas and independent visas, which will be exclusive of employment status in the UAE.

Other new facilities include remote work visas, golden visas and multiple entry tourist visas. These programs have and will continue to attract innovative minds to the country.

Mohammed Shaheen, CEO of Seven Capitals, said the introduction of long-term residency programs and visa regulations, along with the government’s efficiency in handling the Covid-19 situation, have changed the gives for Dubai; particularly for the real estate market, which has seen an increase in the number of investors and second home buyers in Dubai.

“Reforms in the corporate sector have also leveraged the emirates’ position to be our favourite. With the announcement of 100% ownership of certain businesses, the city has also attracted more entrepreneurs with innovative business ideas,” Shaheen added.

“With Dubai being one of the few cities in the world where business is about to go back to normal, and a place where you can still travel without quarantine – a place that has been known to handle the pandemic very well – more and more more people will move here to live and work in the future,” he said.

Mamtani said the absence of direct income tax for UAE residents is a major advantage for anyone venturing into the country.

“This allows individuals to avoid the hassle of double taxation and the affectivity of double tax treaties between their country of nationality and their country of work. Additionally, the UAE’s state-of-the-art infrastructure, cultural diversity and security attract expats to the country,” Mamtani said.

Affordable housing

Zoom Property Insights said much of Dubai’s residential market is in the affordable segment, despite an increase in property prices, as expats will have to pay much higher rates in New York, London and Hong Kong to own. a property.

This, coupled with Dubai’s lower cost of living and low tax base, allows expats to increase their savings while leading a high-end lifestyle.

Moreover, the process of buying a property in Dubai is quite simple for locals and expats alike. The market is currently favoring buyers as they can benefit from lower mortgage rates, affordable home prices and convenient payment plans.

Upscale lifestyle

Dubai’s cosmopolitan vibe and upscale lifestyle attract many people looking for a second home beyond the geographical borders of their home country to improve their standard of living.

The presence of various tourist hotspots such as the world’s tallest building Burj Khalifa and the only seven-star hotel Burj Al Arab also lure millionaires and celebrities to purchase property in the emirate.

With a myriad of new attractions and development projects recently launched and soon to be operational, such as Dubai Museum of the Future, Dubai CommerCity, Royal Atlantis Resort, Ain Dubai, Ciel Dubai and Meydan One Mall, Dubai aims to attract more foreigners . nationals.

The emirate is also set to promote an active lifestyle as His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai, recently tested the new cycle path at Jumeirah Beach.

Furthermore, being a second home for many, Dubai also maintains its reputation as a favorite tourist destination, as it managed to welcome 7.28 million visitors last year, despite the global pandemic, according to the latest official data.

“Dubai remains an attractive and popular destination for expats and ultimately this will benefit the emirate’s property sector,” Shobeiry said.

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