The UAE is experiencing a significant reverse migration trend, with former residents who had relocated to Canada and the US now returning to the country, industry experts report. This shift has led to increased investments in Dubai’s property market from these new Canadian and US nationals, who are seeking to escape high taxes, rising living costs, and fewer opportunities in their adopted countries.
Andrew Amoils, head of research at New World Wealth, confirmed the trend in a Khaleej Times, attributing it to high tax rates in Canada. “Many wealthy expats that leave UAE return later. Tax rates in Canada are much higher than in the UAE, which is probably a factor. Also, the winters in Canada are very long – a lot of centi-millionaires and billionaires from Canada eventually move to the USA due to climate. UAE is, of course, another option with a nice climate,” said Amoils.
Imran Farooq, CEO of Samana Developers, described the influx of buyers from Canada and the US as “a completely new trend.” He noted that Canadians now account for around 5 to 6 percent of investors in Samana’s projects. “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 there,” Farooq added in the Khaleej Times report.
The rising cost of living in Canada, particularly the surge in rents, has also been a contributing factor. Rizwan Sajan, chairman of Danube Group and Danube Properties, highlighted that many Canadian buyers are former UAE residents who had moved to Canada. “Most of our Canadian buyers are desi Canadians from India and Pakistan who lived in the UAE and then migrated there. People there pay up to 40 to 50 percent of their income in taxes. But there is no income tax here in the UAE. The way the UAE pampers its residents, other countries don’t. Therefore, people are attracted back to the UAE after getting the passport,” Sajan said.
He noted that these returning residents have invested in several Danube projects, including the latest Bayz 101 projects. Farooq also mentioned that buyers from the Americas are now increasing significantly, accounting for nearly 13 percent of foreign investors in his projects.
The demand for the UAE’s Golden Visa, which offers long-term residency, has been particularly strong from Europe and the US, according to Farooq. He dismissed any potential slowdown in Dubai’s property market, citing strong demand for properties, especially those priced around Dh2 million, due to Golden Visa eligibility. He also observed a consistent rise in land prices.