According to sources, the UAE has eliminated the Dh1 million ($272,294) minimum down payment needed for individuals to be eligible for a golden visa through real estate investment to entice more citizens and investors to establish longer-term residences in the nation.
Before 2019, investors had to purchase property valued at Dh2 million or more to be eligible for the 10-year renewable residency program.
However, to qualify for the golden visa, buyers of properties purchased through mortgages or installment plans had to pay the bank or developer a minimum down payment of Dh1 million, or 50% of the property’s value.
Maroun Abou Harb, an associate at the legal firm BSA Ahmad bin Hezeem & Associates, claims that the recent change completely does away with the requirement for a minimum down payment.
According to him, investors are now eligible for the golden visa if the property is worth Dh2 million or more, regardless of whether it is completed, off-plan, mortgaged, or not.
The Dubai Land Department’s Cube website, a customer service project to support investors and golden visa services for property buyers, has not yet been updated with the change.
The change has not yet been reflected on the General Directorate of Residency and Foreigners Affairs website in Dubai.
DLD informed The National that the eligibility requirements for real estate investors to obtain golden residency remain the same, with a minimum Dh2 million property value required.
On January 22, BSA Ahmad bin Hezeem & Associates was notified of the modification, according to Mr. Abou Harb.
“No circular has been sent out yet, although when we visited the DLD at The Cube, where they handle the golden visa applications, that’s where we were made aware of this change,” said Jess Stephenson, head of sales progression at Dubai property broker Allsopp & Allsopp.
The UAE, which has the second-biggest economy in the Arab world, has made several legal, social, and economic reforms recently to draw in skilled labor and increase foreign direct investment.
In 2019, the Emirates launched the Golden Visa initiative. The ten-year visas are intended to incentivize foreign investors and exceptional workers to forge closer ties with the nation.
In 2022, the Golden Residence Initiative underwent modifications aimed at streamlining the qualifying standards and broadening the range of recipients.
Investors, entrepreneurs, skilled professionals making more than Dh30,000 ($8,167) per month, scientists, professionals, exceptional talents, exceptional students and graduates, real estate investors, pioneering aid workers, and frontline heroes are all eligible for the 10-year visa.
“This policy change would benefit many buyers and end users as this will open up the golden visa option to pretty much everybody who’s bought a property, because most properties are valued at more than Dh2 million,” Ms Stephenson said.
“That way, all mortgage buyers would be able to apply for the golden visa, and then they can also sponsor their family and domestic staff. This means there would be more buyer confidence in the city, too.”
Another real estate agent promised to personally test the new policy when one of his clients goes to the DLD this week to complete a transaction for a home valued at more than Dh2 million.
According to Matthew Gregory, branch director of Betterhomes, a real estate company, the “excellent government initiative” would help stimulate the real estate market in the meantime.
“This enables us to have positive conversations with potential clients, especially from overseas, and help them get on the property ladder and obtain a visa even quicker with a minimal investment,” he said.
“You only have to buy a property worth Dh2 million, but you don’t have to hold equity of the same value.
“If you buy an off-plan unit, you just need to pay the down payment, which for some is only Dh50,000, and be eligible for a golden visa.”
According to him, to qualify for a golden visa before this, investors had to own equity in the property worth more than a specific amount.
“This meant you couldn’t do it for off-plan properties because you didn’t have equity until you fulfilled a large percentage of the payment plan.”
The managing partner of Crompton Partners Estate Agents in Abu Dhabi, Ben Crompton, stated that his business was unaware of any modifications to the requirements for applying for a golden visa.
“If the value is scrapped, it will mean a lot more golden visas will be issued. It might stimulate domestic purchases, but is much more likely to attract foreign investors,” he said.
According to Mr. Abou Harb, the recent regulation change about the golden visa through real estate investment applies not only to certain emirates but to the entire United Arab Emirates.
“This change is expected to stimulate increased investment in the real estate sector. By eliminating the financial barrier associated with the down payment, more investors may be enticed to participate in property acquisitions, fostering a surge in real estate transactions,” he said.
“This inflow of investment could lead to heightened construction activities, job creation, and overall economic growth associated with the real estate industry.”
He continued by saying that a more varied group of investors might be drawn in by the golden visa’s expanded eligibility requirements.
Now that the emphasis is on the property’s total value rather than a set down payment, people of different income levels might find the golden visa program more approachable.
“The rule change may serve as a strategic response to market dynamics, aiming to bolster Dubai’s real estate sector amid predictions of a potential price drop,” Mr Abou Harb said.
“By facilitating easier access to the golden visa, the government could be proactively counteracting market downturns, ensuring sustained growth and resilience. This move may not only attract new investors but also instill confidence in existing stakeholders, fostering a positive sentiment that could contribute to the stability and long-term vitality of the UAE’s real estate market.”