Propertyfinder research also forecasts that remittances will go up as more money stays in the country
The number of white collar workers in UAE will increase while remittances out of the country will go down as a result of new changes to residency visa rules, according to research from Propertyfinder Group.
According to statistics from the UAE Central Bank, $44 billion (AED 164 billion) of remittances were sent abroad last year, while the percentage of white collar workers fell from 44 percent in 2014 to 40 percent in 2016, according to the Dubai statistics.
Lynette Abad, director of research and data at Propertyfinder Group, said that these numbers are likely to rebound after the new visa legislation is implemented.
“The goal of keeping more of this capital in the UAE and spent in the local economy is a good one,” she said.
“With a slow moving market and high amount of housing supply being released over the next few years, these legislative actions could not have come at a better time.”
Abad added that the UAE government’s new approach to residency will also have the added benefit of enticing talent and encouraging entrepreneurship, start-ups and foreign investment.
“The reforms will give expat residents confidence to invest in property due to the assurance they may remain in the country for a longer period of time,” she said.
“Someone who would normally buy a property in their home country might think twice and decide to buy their home in the UAE, as they will now feel more stable and part of a community with a long-term visa.”
Statistics cited by Propertyfinder show that as many as 70 percent of expats rent in Dubai, partially due to the uncertainty of not knowing how long they plan to stay.