New Golden Visa regulations are a “game-changer” for the UAE’s real estate industry, building on the momentum it’s garnered over the past year and a half.
The flexible regulations to obtain the ten-year residency through real estate will encourage further foreign investments in the country, industry stakeholders told Arabian Business.
“This is yet another proactive initiative from the UAE government, which will certainly entice more foreign investment into the country. In particular, the new visa scheme for property investors is quite appealing to say the least,” said Lynnette Sacchetto, a UAE-based real estate industry consultant.
“The fact that you can get a Golden Visa now when purchasing a secondary or off-plan property for AED2million which can be mortgaged pretty much covers all common scenarios for not only investors but also for UAE residents who own property.
“This is a game-changer, just like so many recent initiatives, and will further push forward the UAE as the central business and investment hub in the region. This will also have a positive impact on the Dubai real estate market, which has been going through record-breaking momentums over the past year and a half,” she continued.
Under the new executive regulations, entrepreneurs, exceptional talents, scientists and professionals, outstanding students and graduates are also among those eligible for the Golden Visa.
“The updated UAE Golden Visa regulation is a great initiative for the country, which has already seen tremendous growth in its real estate sector over the last couple of years, especially with how it recovered after the pandemic. The flexibility that these new rules have to offer, will provide residents with a strong reason to invest in the country long term and allow non-residents to make UAE their second home,” Madhav Dhar, co-founder and COO, ZāZEN Properties, said.
“Specifically, the ability to obtain a Golden Visa when purchasing a property with a mortgage and even purchasing an off-plan property, will help bring in more young professionals who have the ability to contribute positively while also being able to afford a home, since the upfront cash outlay is less,” he continued.
Dubai’s property market has been on an upward trajectory for the past year with the city’s residential market recording more than 52,000 apartments and villa real estate transactions in 2021, totalling $31bn (AED 114.2bn), more than the total for 2019 and 2020 combined.
“Changes in residency requirements in Dubai have had a significant positive impact on the real estate market in the last two years. Yesterday’s announcement is a further step in opening up Dubai to foreign investors and will likely lead to a significant influx in buyers, bolstering an already active market,” said Andrew Cummings, partner – head of prime residential at Knight Frank Middle East.
“The changes to enable off-plan investors to also gain residency will have the biggest impact and we are likely to see an increasing demand for off-plan properties, with buyers no longer being restricted to having to have a title deed of a ready property in hand. Whether or not this will lead to downward pressure on the resale market is more uncertain, with demand in this area predominantly being driven by end users rather than investors.
“Either way, decisions like this further the attractiveness of Dubai as a destination for investors and end users like and we anticipate this will lead to further strengthening of the market in coming years,” he added.
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