In a recent development, the UAE has revised its regulations for real estate investors aiming to qualify for a 10-year Golden Visa, removing the previous requirement of a minimum AED1 million down payment.
Previously, investors were obligated to contribute a minimum of 50 percent of the property value or AED1 million as a down payment to be eligible for a Golden Visa. This amendment is anticipated to stimulate property investment in the UAE, making Golden Visas more accessible through real estate and boosting the overall property market.
The new criteria now focus solely on the property's value, requiring it to be AED2 million or more, irrespective of the down payment amount or financing terms. Swapnil Pillai, Associate Director of Research at Savills Middle East, suggests that the off-plan real estate sector is poised to benefit the most from this change.
Pillai notes, “The recent move by the government to scrap the minimum payment required to be eligible for a Golden Visa will further incentivise prospective buyers to invest in the property market. The off-plan segment is likely to benefit the most as competition intensifies on account of the significant jump in new launches.”
The alteration in regulations could potentially lead to increased investments in the real estate sector by reducing financial barriers. As a result, a surge in transactions and construction activities may follow.
So, what are the current requirements for obtaining a UAE Golden Visa as a real estate investor?
According to Alina Adamco, Head of Sales at Metropolitan Homes, the key eligibility requirements for a 10-year renewable residency permit include:
- Minimum Investment: Investors qualify for a 10-year Golden Visa with a total property investment of AED 2 million or more, but the investment cannot be spread across more than three properties.
- Shared Ownership: Co-owners must individually possess a share valued at AED 2 million or more to qualify for the 10-year visa, regardless of familial or non-familial relationships.
- Joint Ownership by Spouses: If a married couple jointly owns a property exceeding AED 2 million, either spouse can apply for the visa, even if their individual share is less than AED 2 million.
- Off-Plan Properties: Investors can apply for the visa for off-plan properties priced at AED 2 million or above, subject to certain terms and conditions based on the developer’s and project’s credibility.
- Mortgaged Properties: Having a mortgage on the property does not affect eligibility for the Golden Visa, as long as its value is AED 2 million or more.
Adamco emphasizes that these updated guidelines provide greater flexibility for investors seeking Dubai’s coveted Golden Visa through property ownership, potentially providing a significant boost to the economy. While the update is yet to be reflected on government websites, legal professionals and agents have reportedly been informed of the new down payment rule change by the Dubai Land Department.
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