UAE Golden Visa: Dubai real estate expects boost as ‘minimum down payment’ rule dropped

Previously, investors needed to put down at least 50 percent of the property value or AED1 million as a down payment to qualify for a Golden Visa.

The change will likely encourage more residents and investors to establish deeper roots in the UAE by making Golden Visas more accessible through real estate and buoy the property market.

Dubai real estate: Off-plan sector to benefit ‘most’, says expert

Now, all that is required is for the property value to be AED2 million or more, regardless of down payment amount or financing terms. According to Swapnil Pillai, Associate Director of Research at Savills Middle East, the off-plan real estate sector is “likely to benefit the most,” from this new update.

“The residential sector had its best year on record as transaction activity grew by 29 percent y-o-y to an all-time high of 118,200 units in 2023. The recent move by the government to scrap the minimum payment required to be eligible for a Golden Visa will further incentivise prospective buyers to invest in the property market. The off-plan segment is likely to benefit the most as competition intensifies on account of the significant jump in new launches. In 2023 alone, more than 47,000 units were launched, an increase of 90 percent y-o-y,” Pillai said.

The new initiative could further result in increased investment in the real estate sector by lowering the financial barrier, and more transactions and construction activity could occur.

So, what are the current requirements to get a UAE Golden Visa as a real estate investor?

Arabian Business reached out to Alina Adamco, the Head of Sales at Metropolitan Homes, who listed the key eligibility requirements to receive the 10-year renewable residency permit.

• Minimum Investment: Investors are eligible for a 10-year renewable Golden Visa with a total property investment of AED 2 million or more. However, the investment cannot be spread across more than three properties.
• Shared Ownership: When a property is co-owned, only individuals with a share valued at AED 2 million or more qualify for the 10-year visa. This applies to both family and non-family co-owners.
• Joint Ownership by Spouses: If a married couple jointly owns a property exceeding AED 2 million but each spouse’s share is less than AED 2 million, either spouse can apply for the visa.
• Off-Plan Properties: For off-plan properties priced at AED 2 million or above, the investor can apply for the visa subject to certain terms and conditions. The visa approval depends on the developer’s and project’s credibility.
• Mortgaged Properties: Investors can apply for the Golden Visa even if they have a mortgage on the property as long as its value is AED 2 million or more. The amount paid by the investor does not affect eligibility.

“These updated guidelines offer greater flexibility for investors seeking Dubai’s coveted Golden Visa through property ownership and providing a massive boost to the economy. We believe this move by the government will further incentivise residents who are considering buying property in Dubai,” she said.

The update is yet to be reflected in government websites, however, lawyers and agents have been informed of the new down payment rule change by the Dubai Land Department, according to local media reports.