Filipinos without UAE residence visas can now buy their own property in Sharjah.
This comes after a landmark decision by Sharjah authorities has been lodged in a follow-up to a ruling released in 2014 which gave non-UAE investors the thumbs up to buy property there on a 100-year lease.
The ruling has been good news to developers eyeing to capitalize on the big demand for housing there.
Four years ago, expatriates, including Asian nationals, without UAE residence visas can only dream of buying their own property in the UAE. But all that has changed.
“Developers will now be able to market projects globally and target purchasers from around the world and not just those within the GCC. A wider range of buyers will help generate sales and re-sales of properties. Previously, some investors were reluctant to buy even if they did have a current resident visa, as they didn’t feel certain as to what would happen should they lose their employment,” Suzanne Eveleigh, Cluttons’ head of Sharjah, said in a report by Khaleej Times.
Sharjah is an attractive place for Arab and non-Arab nationals alike. It is a highly urbanized city teeming with sights to see and business and job opportunities. Adding to this is the low cost of living there.
Because of this, many developers have launched plans to put up a slew of projects in Sharjah cities, including Tilal City, Al Zahia, Aljada, Al Mamsha, Nasma Residences, Maryam Island and Sharjah Waterfront City.
“Sharjah is also increasingly becoming a tourism destination, particularly for families, which will probably result in a number of holiday home investments. Bulk investments for long-term rental returns are also likely to happen,” John Stevens, managing director of Asteco, said.
But because the idea of allowing non-UAE nationals to own properties in Sharjah is a relatively new concept, many banks in the UAE are still a little bit “conservative”.
“They may be more conservative towards lending on Sharjah real estate in the short term as this is still a new concept,” Stevens said.
“It is unlikely that local banks would offer mortgage facilities to investors without a residency visa. All developers within Sharjah offer very attractive payment terms that in the case of most international investors would remove the need for any bank finance,” Eveleigh said
Despite this, Eveleigh added that there is still so much potential brewing for real estate investments in Sharjah.
“One area of growth we would expect to see is more investments into student accommodation as Sharjah has a number of excellent universities with a steady increase of students,” she added.
