UAE Golden visa rule changes will bring a diverse pool of investors to the Dubai real estate sector, according to analysis by Springfield Properties.
In a bid to foster greater investor participation in the real estate sector and deepen ties with residents, the UAE government is scrapping the AED1m ($272,000) minimum down payment requirement for Golden Visa eligibility through real estate investment.
As of January 24, 2024, the UAE abolished the minimum down payment requirement of AED1m ($272,000) or 50 per cent of the property’s value for the property Golden Visa.
UAE Golden Visa Dubai real estate boost
This means that, regardless of the down payment amount and the property’s status (off-plan, completed, mortgaged, or not mortgaged), investors can now qualify for a Golden Visa by owning a property worth AED2m ($545,000) or more.
Investors who choose properties valued at AED2m ($545,000) or more can now unlock the door to long-term residency in the United Arab Emirates.
Farooq Syed, CEO of Springfield Properties, a prominent real estate brokerage in Dubai, has hailed the elimination of the AED1m ($272,000) minimum down payment for real estate investments to qualify for golden visas as a significant step towards attracting foreign investment and catalysing growth in the real estate sector.
Syed said: “The removal of this financial threshold widens the doors for a more diverse pool of investors, fostering increased engagement in the property market.
“This not only benefits international investors but also bolsters the overall development and prosperity of the UAE economy.”
Recent figures from Dubai Land Department reveal that the emirate’s real estate market has reached unprecedented heights, witnessing 1.6m transactions in the previous year, reflecting a notable 17 per cent surge compared to the preceding year, according to Springfield Properties.
Transaction values skyrocketed to AED634 billion ($172.6bn), with 166,400 deals in 2023, marking a 20 per cent and 36 per cent increase in value and volume, respectively.
Syed said: “We anticipate that this progressive move will ignite a surge in interest in real estate investment opportunities across the UAE, propelling demand for residential and commercial properties”.
Investment inflows witnessed a 55 percent surge, with 42 percent of new investors originating from international markets, underscoring Dubai’s global allure.
“The elimination of the minimum down payment requirement is in alignment with the UAE’s vision of cultivating a business-friendly ecosystem and positioning itself as a leading global hub for investment and innovation.
“We eagerly anticipate the positive impact of this decision on the real estate sector and the broader economy”.
source: arabianbusiness