UAE Golden Visa now available directly from real estate developers

Those purchasing property off-plan or with a mortgage now have the option to obtain 10-year residency in the UAE through a Golden Visa as part of the country’s plan to attract further investments and boost the benefits for long-term residents.

The flexible regulations to obtain the 10-year residency through real estate will encourage further foreign investments in the country, industry stakeholders have previously told Arabian Business.

The 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 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,” said Lynnette Sacchetto, a UAE-based real estate industry consultant.

How updated Golden Visa regulations are spurring demand for Dubai’s real estate

Recent updates to the UAE’s Golden Visa regulations have a positive impact on many sectors, including Dubai’s real estate said, Madhav Dhar, Co-founder and COO, ZāZEN Properties.

Dhar credits the recent updates to the ten-year residency, along with the successful coronavirus response that the UAE exhibited, for the significant recent boom in Dubai’s property market.

In an exclusive interview with Arabian Business, Dhar also discusses the importance of sustainable real estate, especially in light of the UAE hosting COP28 in 2023.

What is your outlook on the future of real estate in Dubai?

The near future of the real estate market in Dubai looks strong, and we have witnessed the continuous growth of this sector over the last couple of years. This is because the world acknowledged and witnessed the UAE government’s response and management of the pandemic, the excellent work of the entire healthcare industry, the successful vaccination drive and how every citizen and resident positively contributed to the betterment of the UAE community.

The recently announced updated UAE Golden Visa regulations are a great initiative that will spur investment into real estate even more, especially with the flexibility that these new rules have to offer, providing residents with a strong reason to invest in the country long term and allowing non-residents to make UAE their second home.

What do you think is driving current market demand?

I believe that the biggest factor behind the continuously increasing market demand besides the UAE being one of the most ideal destinations to live and work in, are the initiatives set in place by the UAE government, like the expansion of the Golden Visa regulations. Demand from overseas buyers is still strong and coupled with improved affordability the market will continue to improve.

Dubai is also positioned as the only major global city to stay mostly restriction-free beyond 2021 and will ultimately benefit from any crisis within the region and beyond. The UAE, which has strong ties with Russia, has not imposed sanctions for its invasion of Ukraine, like other nations. And as long as money flows in through legal banking channels, Russian nationals will also push demand.

What is the trend towards sustainable real estate in the region?

With the announcement that the country will be hosting the UN’s climate change summit, COP28, in 2023, governments, corporations and individuals alike are becoming increasingly more aware of their responsibility towards a sustainable future.

With buildings in urban cities contributing almost 40 percent of worldwide carbon emissions, it is now a responsibility for all property developers to put sustainable solutions at the heart of the development process, and for governments to put in place legislation and incentives to push sustainable development opportunities, in line with UAE’s commitment to achieving net-zero by 2050.

Community-based sustainable developments will take centre stage over the next five years, as the UAE and the world align with global sustainability targets. More importantly, the opportunity for the real estate sector isn’t only in developing sustainable buildings, but also in the health and well-being of tenants, social sustainability, accessibility and electric vehicle take-up. The developments that adopt this the quickest and provide that to their residents/tenants at the most affordable price, will win.

Sharjah developer Arada has started offering Golden Visa-linked benefits to its buyers

Buyer demand for homes above 2 million dirhams is increasing, following the UAE’s move to change the qualification requirements for its 10-year Golden Visa scheme, a real estate developer in Sharjah said.

Arada, which is building luxurious communities in Sharjah, said it was truly seeing the benefits of UAE’s increasingly progressive approach in issuing residence visas – particularly on supporting the growth of the country’s property market.

“We’ve seen a number of positive changes in the regulatory environment in the UAE over the past couple of years that have made it easier for both residents and overseas investors to plan their long-term future here. These new changes have provided a real boost to the local real estate market,” Ahmed Alkhoshaibi, Group CEO of Arada, said.

He added the recent change in qualification requirements for Golden Visa eligibility has “resulted in a healthy increase in buyer demand for homes above the 2 million dirhams mark.”

Just recently, the UAE announced that owning properties worth 2 million dirhams will allow investors to obtain the 10-year residence visa, a significant drop in required property investment. Taking effect in September this year, the new rules also don’t include any specifications on the property transactions – whether the units or ready of off-plan or paid through mortgage or in cash.

Many developers reacted positively to these policy adjustments, praising the UAE government for its active efforts in turning the country into a global hub. For Sharjah developer Arada, the new rules present a good opportunity to further boost their sales – explicitly advertising their properties as a way to obtain the Golden Visa.

“Anyone who purchases property from Arada valued at AED2 million and above and who wants to apply for the Golden Visa will receive assistance from our dedicated after-sales team, who will be happy to walk them through the process,” its CEO told Arabian Business.

It makes sense for foreign investors to be attracted to UAE’s Golden Visa scheme, another real estate developer implied, given the UAE’s strategic geographical location.

“The UAE sits at the crossroads of Europe, Asia, and Africa, providing easy access to many of the world’s fastest-growing emerging markets,” Faisal Ali Mousa, chairman of FAM Holding, said.

“The property market has witnessed a positive outlook in the first quarter of 2022 on the back of a string of government initiatives, economic growth, and improved market sentiment,” he added.

Earlier this year, the Dubai developer announced its intention to list on the parallel market of Abu Dhabi Securities Exchange. Al Mousa said 2021 has been a profitable year for his firm and he is expecting for further growth “more investment both local and foreign, focusing on real estate.”

“The property market has seen a boom again after the Covid-19 pandemic. The main reason behind this is the UAE government’s commitment and efforts in ensuring that all the main sectors are continuously evolving through different initiatives,” he explained.

These comments come as an earlier report showed the UAE as a top destination for millionaires this year. The Henley Global Citizens Report said around 4,000 high net worth individuals are set to migrate to the country, surpassing countries such as Australia, Singapore, Canada, and other big economies.

“UAE has become a hub of investment post-Covid and Expo 2020 Dubai. Millionaires are always on the hunt for such investment opportunities to grow,” FAM’s Ali Mousa said.

Real Estate Developer in UAE is shouldering the cost of obtaining a UAE Golden Visa

Dubai-based Samana Developers is shouldering the cost of obtaining a UAE Golden Visa for its eligible customers.

The company, which has seen an increase in the number of foreign investors inquiring about the UAE property market in recent months, said it set up a “one-stop service” to assist investors in obtaining the 10-year visa.

The service, of course, is for those who meet the UAE’s eligibility rules for the visa – buying AED 2 million worth of properties in the country.

“Golden Visa is a golden opportunity and an extra incentive for real estate buyers, along with tax benefits in Dubai. It motivates buyers to own more and stay longer in UAE and is a great tool to retain people post-Expo 2020 Dubai,” Imran Farooq, chief executive officer of Samana Developers, said.

According to the developer, they have observed investors “merging two properties to reach the AED 2 million threshold to get the Golden Visa,” with demand for two-bedroom units rising. Many investors would also take two one-bedroom units to be able to obtain the visa.

Farooq said the top buyers of properties for Golden Visa are “mainly Europeans, Africans, and nationals of the Commonwealth Independent States (Russia, Ukraine, etc).”

This scheme is not new to developers in the UAE, as other real estate companies take advantage of the relaxed Golden Visa rules.

Just recently, UAE significantly dropped the required amount of property investment to obtain the Golden Visa. Taking effect in September this year, the new rules also don’t include any specifications on the property transactions – whether the units or ready of off-plan or paid through mortgage or in cash.