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UAE Eliminates Minimum Down Payment for Golden Visa, Boosting Real Estate Investment Opportunities.
UAE recently made a significant change to its golden visa program for real estate investors, which has important implications for those involved in the real estate market in the country. The previous requirement of a minimum down payment of Dh1 million ($272,264) for property purchases to qualify for a golden visa has been eliminated. This change is part of the UAE's broader efforts to attract more residents and investors, encouraging them to establish deeper roots in the country.
Now, investors can qualify for the golden visa if the property's value is Dh2 million or more, regardless of whether it's off-plan, completed, mortgaged, or not mortgaged. Previously, to be eligible for the 10-year renewable residency program introduced in 2019, investors were required to acquire property valued at Dh2 million or above. Even for properties purchased through mortgage or installment plans, homebuyers had to make a minimum down payment of Dh1 million or 50% of the property's value to the bank or developer to qualify for the golden visa.
As per our Q3 2023 Dubai Real Estate market report, there were 31,213 transactions (6,921 mortgage transactions) had total worth of AED 97.48B in the 3rd quarter of 2023. This change is expected to have a significant impact on the real estate market and overall value of the transactions. Real estate investors looking to secure a golden visa will no longer face the financial burden of a substantial down payment, making the program accessible to a broader range of investors. This is especially beneficial for mortgage buyers, as they can now apply for the golden visa and also sponsor their family and domestic staff with greater ease.
One of the notable aspects of this policy change is that it is not limited to specific emirates but applies across the UAE. This move is expected to stimulate increased investment in the real estate sector, as the removal of the down payment requirement could entice more investors to participate in property acquisitions. This, in turn, may lead to a surge in real estate transactions, increased construction activities, job creation, and overall economic growth associated with the real estate industry.
Furthermore, the change in eligibility criteria for the golden visa program, from a specific down payment requirement to the property's overall value, may attract a more diverse pool of investors with varying financial capacities. Since we saw 14,745 primary market transactions in the 3rd quarter of 2023, this will increase heavily due to the new policy change. This shift in policy may also serve as a strategic response to market dynamics.
Overall, this policy change is expected to have a positive impact on the UAE's real estate market, attracting both domestic and foreign investors, fostering economic growth, and ensuring the long-term vitality of the sector. Real estate investors in the UAE can now explore opportunities with increased confidence and flexibility, making the golden visa program even more appealing for those seeking to invest in the country's real estate market.
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Source : Media Team
