The real estate and immigration experts in UAE, like Imran Farooq of Samana Developers and AAA International immigration, have observed that the UAE expatriates who migrated to Canada, the US and other European countries are returning and settling back to the Emirates. Major reasons? Hard life, high taxes, inflation, rents, cost of living and fewer opportunities in those countries.
Reverse Migration
Imran Farooq, while sharing his views during a live interview with the Khaleej Times, considers it the reverse migration trend. He said the increase in the number of real estate buyers from Canada and the US was “a completely new trend”.
“There is a kind of reverse migration from Canada, which was among the top migration countries. But now reverse migration trend has started due to economic slowdown and law and order situation there. Canadians now account for around 5 to 6 per cent of investors in Samana’s projects,” he said.
The reports said that property developers in Dubai have seen increased investments from such new Canadian and US nationals who used to live in the UAE in past. They are now buying homes in the emirate to move away from the continuously rising cost of living, no savings and unappealing lifestyle, as compared to the life in Dubai.
According to IPSOS report, a multinational market research firm based in Paris, recorded continued high interest rates and the rising cost of living made 2023 a difficult year for many Canadians. 69% of Canadians say they are concerned that they can’t absorb any unexpected costs. 66% are worried they will have to delay future plans. 53% say they do not have enough money to feed their family, or that they may have to use credit money to pay bills.
The fact that these figures have remained relatively consistent since April 2023 underscores the sustained stress this year has imposed on Canadians’ finances. Political leaders are being urged to act, as 47% of Canadians say that inflation and the cost of living should be the top priority for Canada’s political leaders in 2024, the IPSOS report said.
UAE Scenario
The UAE expats who are originally from the developing and conflict countries had migrated to Canada, the US and other Western countries in past 10 years in search of better opportunities and to obtain the strong passports. But the public safety and security aspect, quality of life, and shorter flights to see loved ones are encouraging them to return to the UAE.
This trend has triggered a new demand for properties from such expats who are mainly end-users in the Dubai’s residential property market.
Other developers expressed similar views saying there are two types of migrants. The people who did not stay in the UAE and migrated to Canada and the US might stay there, but those who tasted the lifestyle of the UAE, especially Dubai, are coming back.
People in Canada and the US pay up to 40%, event 50%, of their income in taxes. But there is no income tax here in the UAE. Therefore, people are attracted back to the UAE after getting the passport, analysts say.
Imran Farooq continued that the US was not a big segment among foreign investors before; but now, buyers from America are also increasing in big numbers, accounting for nearly 13% of foreign investors in Samana projects.
UAE Golden Visa for Real Estate Investors
“The demand for Golden Visa was very strong from Europe and now we are getting from the US also,” said the Samana CEO.
Farooq ruled out a slowdown in the UAE real estate market in 2024. He said there was a demand for properties, due to Golden Visa eligibility.