The United Arab Emirates has made a significant change to its golden visa policy, removing the AED 1 million ($272,294) minimum down payment previously required for real estate investors. This move is aimed at bolstering the country’s appeal to residents and investors, encouraging them to establish stronger ties within the UAE.
Under the previous policy, to be eligible for the UAE’s 10-year renewable residency program, introduced in 2019, investors had to purchase property worth at least AED 2 million. Additionally, for properties acquired via mortgage or instalment plans, a down payment of AED 1 million, or half the property’s value, was mandatory to qualify for the golden visa.
Maroun Abou Harb of BSA Ahmad bin Hezeem & Associates explains that this recent amendment negates the need for any minimum down payment. Investors are now eligible for the golden visa with a property value of AED 2 million or more, irrespective of its status—off-plan, completed, mortgaged, or otherwise.
However, this update has not yet been reflected on the Dubai Land Department’s Cube website or Dubai’s General Directorate of Residency and Foreigners Affairs website as of yet.
The DLD confirms that the basic requirement for golden residency for real estate investors remains unchanged, with the property value set at a minimum of AED 2 million.
Industry professionals highlight the impact of this policy change as it opens up the golden visa option to a broader range of buyers, particularly those purchasing mortgaged properties. This change is expected to enhance buyer confidence in Dubai, as mortgage buyers can now apply for the golden visa and sponsor their family and domestic staff.
Mr. Abou Harb notes that this policy shift will likely stimulate investment in the UAE’s real estate sector. By removing the down payment barrier, the country could see an increase in property transactions, construction activities, job creation, and overall economic growth related to real estate.
This broader eligibility for the golden visa is expected to attract a more diverse group of investors. The focus on the property’s total value rather than a specific down payment makes the program more accessible to individuals with different financial means. This rule change could be a strategic response to market dynamics, potentially countering any predicted downturns in Dubai’s real estate market, thereby ensuring its sustained growth and resilience.
Original article reference: The National News