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UAE Golden Visa: Dubai Real Estate Sees Potential Surge as Minimum Down Payment Rule is Eliminated

UAE removes the previous requirement of a minimum AED1 million down payment.


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.


March 3, 2024
The State of Dubai's Real Estate Market Dubai's real estate market has been experiencing tremendous growth, making it one of the most attractive investment destinations in the world. In 2022, Dubai witnessed a record-breaking year with 123,000 millionaires investing a staggering $528 billion in the market. This marks the first time in 23 years that the market has seen such a significant influx of wealth. Despite challenging global conditions, including geopolitical tensions and the ongoing pandemic, Dubai's real estate market remains resilient. The Attractiveness of Dubai's Real Estate Market Dubai's real estate market has consistently ranked among the top three markets in the world. Last year, the market saw a surge in investment from millionaires and billionaires, with 123,000 individuals choosing to invest their wealth in Dubai's real estate sector. This influx of investment has proven the market's appeal and stability. International reports and indices further confirm the attractiveness of Dubai's real estate market. The Knight Frank Global Index, a renowned real estate index, predicted a 2.7% increase in prime real estate prices globally, but for Dubai, the forecast was even more impressive, with an increase of 13.5%. This projection is already being reflected in the market, with over $110 billion worth of real estate transactions taking place in the first quarter of 2023 alone. Additionally, 38,000 millionaires have already invested in the market this year, further solidifying Dubai's position as an investment hotspot. Factors Contributing to Dubai's Real Estate Boom Several factors have contributed to the success and growth of Dubai's real estate market. Firstly, the way Dubai handled the COVID-19 pandemic played a crucial role. While many countries remained in lockdown, Dubai opened its doors, becoming a safe haven for investors looking to capitalize on opportunities. Dubai's real estate developers responded to this demand by launching numerous high-quality projects, attracting both local and international buyers. The diversification of businesses in Dubai has also been a significant attraction for investors. District 2020, for example, offers incentives for businesses to set up and thrive in Dubai, including two years of waived licensing fees. Additionally, Dubai's favorable tax environment, with no tax challenges on real estate, has enticed investors from around the world. Furthermore, the introduction of the 10-year visa has been a game-changer. Initially, the visa required a AED10 million investment, but it has since been lowered to AED2 million, making it more accessible to a broader range of investors. This incentive has attracted thousands of millionaires and billionaires to Dubai, seeking long-term residency and investment opportunities. Dubai's global initiatives, such as Dubai Global, have also contributed to the market's growth. By setting up offices in 42 different countries, Dubai is actively promoting the UAE as a business destination. This outreach strategy has been effective in attracting international investors and showcasing Dubai as a city with vast potential. Additionally, Dubai's infrastructure, quality of life, and safety standards have been internationally recognized. The city has been ranked as the cleanest and safest city in the world for three consecutive years, making it an appealing option for those seeking a high-quality lifestyle. The Future of Dubai's Real Estate Market Dubai's real estate market is projected to continue its upward trend in the next year and beyond. International reports and indices anticipate a 13.5% increase in prices for Dubai, making it a lucrative investment opportunity. The government's initiatives, such as new visas and business opportunities, will attract a larger number of investors to the city, further driving the market's growth. As Dubai's real estate market continues to flourish, new products and niches will enter the market. The city is becoming a global hub for education, with over 100 international universities represented. This, along with other factors like tax benefits, safety, and business opportunities, will continue to attract investors from all around the world. In conclusion, Dubai's real estate market is thriving, offering lucrative investment opportunities to both local and international investors. The market's resilience, coupled with the government's initiatives and the city's appeal, makes it a top choice for those looking to grow their wealth. As Dubai continues to position itself as a global business hub, its real estate market is expected to remain at the forefront of global investment opportunities.
February 27, 2024
Are you wondering how the Dubai real estate market is shaping up for 2024?
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