Golden Visas are in demand right now, and Dubai’s developers are well aware of this. From September, developers are planning off-plan launches aimed at investors who want to use the Golden Visa route.
And how should it be done? More options should be available in the crucial Dh2 million and above price category. Because the longer-term stay will require a Dh2 million commitment under the proposed property investment requirements for Golden Visas. In contrast to when it was Dh10 million.
“For property buyers. the Golden Visa is an added layer of security they can rely on with their investments,” said Abdullah Alajaji, CEO of Driven Properties, which specializes in niche luxury projects. “For developers, it may be difficult to put an exact economic value to the Visa incentive they are offering, but it does expand the selling possibility for their product.
Help with the Visa process
Developers are already promising to complete all the paperwork and other processes once the authorities give the all-clear to purchasers who reach the investment threshold. With the beginning of a new season just around the corner, there will be a huge surge in demand for people to employ real estate assets for the 10-year visa.
“A lot of the new off-plan buying will be from first-time buyers wanting newer projects to commit to,” said a developer source. “Most of the available off-plan inventory – priced in the Dh2 million range – are already gone. If Dubai is to attract more Golden Visa investment subscribers, the property market needs additional off-plan launches.
“These buyers are not fazed by the 20-30 percent increase in property values in these 12 months. They have only one mission – be eligible for a Golden Visa.”
According to developers, the newest wave of buyers wants to obtain the Golden Visa as soon as possible, and their intention is to acquire just one unit to do so. “These buyers are not in the mood to chase bargains or get to the Dh2 million mark by buying more than one property,” said an estate agent.
“One unit and direct to the Golden Visa, that’s the intent. But they will not want to see inflated prices from developers.”
As well as longer-term agreements to freezing service fees, developers are likely to preserve the current incentives of waiving or splitting the Dubai Land Department registration fees. (Developers may also be requested to offer indicative rates on increases beyond that, as some buyers saw substantial rises following a one- or three-year initial service charge freeze.)
Interest from everywhere
According to a recent update from Zoom Property Insights, the latest incentive for Indian buyers to continue showing interest in Dubai real estate is the visa.
Indians are the top foreigners purchasing real estate in Dubai, followed by holders of British, Italian, and Russian passports. According to Zoom Property, investors from France, Canada, Pakistan, and Egypt “have also made major investments.”