UAE Eases Golden Visa Requirements for Property Investors
In a move aimed at encouraging more residents and investors to establish deeper roots in the country, the UAE has abolished the Dh1 million ($272,294) minimum down payment previously required for individuals to qualify for a golden visa through real estate investment, according to undisclosed sources.
This change is expected to stimulate real estate investment and benefit a broader range of buyers, including mortgage holders. The policy aims to boost the property market and attract more foreign investors to the UAE.
Eligibility for Renewable Residency Program
Previously, to be eligible for the 10-year renewable residency program introduced in 2019, investors needed to acquire property valued at Dh2 million or more. However, for properties purchased on mortgage or installment plans, homebuyers had to make a minimum down payment of Dh1 million or 50% of the property's value to the bank or developer to qualify for the golden visa.
The recent change eliminates the necessity for any minimum down payment, as confirmed by Maroun Abou Harb , an associate at law firm BSA Ahmad bin Hezeem & Associates. Now, investors can qualify for the golden visa if the property's value is Dh2 million or more, regardless of whether it's off-plan, completed, mortgaged, or not mortgaged.
Despite the rule change, it has not yet been updated on the Dubai Land Department's Cube website, designed to support investor and golden visa services for property buyers. Additionally, Dubai's General Directorate of Residency and Foreigners Affairs website has not reflected the modification either.
It's worth noting that the eligibility criteria for obtaining the golden residency for real estate investors remain unchanged, with the property value requirement set at a minimum of Dh2 million, according to the Dubai Land Department
Removal of Mininum Downpayment
The removal of the minimum down payment requirement is expected to have a positive impact on buyers, as Jess Stephenson, head of sales progression at Dubai property broker Allsopp & Allsopp, highlighted.
She mentioned that this change opens up the golden visa option to a broader range of property buyers, given that most properties in Dubai are valued at more than Dh2 million. This development is expected to boost buyer confidence and encourage more people to invest in the city.
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Get Visa with Minimal Investment
Matthew Gregory, branch director at real estate agency Betterhomes, praised the government's initiative as excellent for the property market. He explained that this change allows for more positive discussions with potential clients, particularly those from overseas, making it easier for them to own property and obtain a visa with a minimal investment.
Buyers now only need to purchase a property worth Dh2 million without the requirement to hold equity of the same value.
Before this change, investors were required to have equity in the property above a specific value to qualify for a golden visa, which made it challenging for buyers of off-plan properties who hadn't paid a significant portion of the payment plan.
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"This means you couldn't get a golden visa for properties that were still being built because you didn't have enough ownership stake until you paid a significant part of the property's price.
Ben Crompton, the managing partner of Crompton Partners Estate Agents, a real estate agency in Abu Dhabi, mentioned that his company had not received any updates regarding changes to the golden visa application criteria.
He believes that if the minimum value requirement is eliminated, it could lead to more golden visas being issued. This change may encourage local property purchases, but it's likely to attract more foreign investors.
Boost Real Estate Sector Growth
The recent modification to the golden visa rule applies not only to specific emirates but to the entire UAE. According to Mr. Abou Harb, this change is expected to boost investment in the real estate sector by removing the financial barrier associated with the down payment. This could lead to increased construction activity, job creation, and overall economic growth in the real estate industry.
The broader eligibility criteria for the golden visa may attract a more diverse group of investors. Shifting the focus from a specific down payment requirement to the overall value of the property may make the golden visa program more accessible to individuals with varying financial capacities.
This rule change appears to be a strategic response to market dynamics, aimed at strengthening Dubai's real estate sector, especially in anticipation of a potential decrease in property prices. By making it easier to obtain a golden visa, the government may be proactively addressing market challenges, ensuring sustained growth and resilience. This move could not only attract new investors but also instill confidence in current stakeholders, fostering a positive sentiment that could contribute to the stability and long-term prosperity of the UAE's real estate market."
