The UAE has eliminated the requirement that real estate investors qualify for a golden visas by making a minimum down payment of Dh1 million ($272,294). According to sources, the country is making this adjustment as part of its efforts to draw in more citizens and investors and to entice them to forge closer bonds with one another. In order to be eligible for the 10-year renewable residence program that was launched in 2019, investors have to buy properties for at least Dh2 million.

In the past, in order to be eligible for a golden visas, buyers of real estate through mortgages or installment plans had to pay the bank or developer a minimum down payment of Dh1 million, or 50% of the property’s worth. As per Maroun Abou Harb, an associate with BSA Ahmad bin Hezeem & Associates, the current adjustment totally eliminates the need for a minimum down payment.

According to Maroun Abou Harb, investors can currently apply for the golden visas if the property is valued at Dh2 million or more, regardless of whether it is completed, off-plan, mortgaged, or not. It is noteworthy that the Dubai Land Department’s Cube website, which supports investor and golden visa services for property buyers, has not been updated with this adjustment. The Cube website is a customer service initiative.

As of right now, the website of the Dubai General Directorate of Residency and Foreigners Affairs does not feature the modification.

The Dubai Land Department verified to The National that the eligibility requirements for real estate investors seeking golden residency are still the same, with a Dh2 million minimum property value requirement.

Mr. Abou Harb claims to have received information on the modification on January 22nd from the legal firm BSA Ahmad bin Hezeem & Associates.

The head of sales progression at Allsopp & Allsopp, a real estate brokerage in Dubai, Jess Stephenson, stated, “A circular has not yet been distributed. But we were made aware of this modification when we visited The Cube’s Dubai Land Department, which handles applications for golden visas.”

The UAE, which has the second-biggest economy in the Arab world, has made a lot of economic, legal, and social reforms recently in an effort to improve foreign direct investment and draw in skilled labor.

In order to strengthen ties to the nation for exceptional workers and foreign investors, the Emirates introduced the Golden Visa program in 2019, providing 10-year visas.

The Golden Residency Initiative underwent changes in 2022 that streamlined the qualifying requirements and increased the number of recipients.

A wide range of people are granted the 10-year visa: investors, entrepreneurs, professionals with expertise making more than Dh30,000 ($8,167) per month, gifted individuals, scientists, professionals, exceptional graduates and students, real estate investors, trailblazing humanitarians, and frontline heroes.

“This policy adjustment is set to be advantageous for numerous buyers and end-users, as it essentially extends the golden visas option to virtually anyone who has purchased a property, given that most properties surpass the Dh2 million threshold,” said Ms. Stephenson.

“Mortgage buyers who meet the qualifying requirements can apply for a golden visas, which permits them to sponsor their domestic workers and family later on. This broadens the appeal of the Golden Visa initiative and boosts buyer trust in the city,” she continued.

A different real estate agent said that this week when one of his clients goes to the Dubai Land Department (DLD) to register a transaction for a property valued at more than Dh2 million, he intends to personally evaluate the policy change.

Meanwhile, Betterhomes’ Branch Director, Matthew Gregory, commended the “excellent government initiative,” pointing out that it will help to stimulate the real estate market. He stressed how this enables fruitful conversations with prospective customers, especially those from outside, making it easier for them to enter the real estate market and expedite the process of obtaining a visa with little financial outlay.

“All that is required is that you buy a Dh2 million property; equity of the same amount is not necessary. For example, if you purchase an off-plan flat, you can obtain a golden visas by making the down payment, which can often be as little as Dh50,000.”

In the past, he continued, investors needed to keep equity in the property above a certain amount in order to be eligible for a golden visa.

“This restriction applied especially to off-plan properties since you wouldn’t have equity until you completed a significant portion of the payment plan,” said the insider.

According to Ben Crompton, Managing Partner of Crompton Partners Estate Agents, an Abu Dhabi real estate company, his company has not yet been notified of any modifications to the requirements for applying for a golden visas.

“The number of golden visas issued will significantly rise if the value requirement is removed. Although it might promote domestic purchasing, the main effect is anticipated to draw in more foreign investors, he stated.

Mr. Abou Harb highlighted that the new regulation pertaining to the golden visa through real estate investment is applicable across the United Arab Emirates, not just in certain emirates.

This reform is expected to have the effect of encouraging more investment in the real estate industry. “If the down payment requirement is eliminated, more investors may be able to purchase real estate, which could lead to an increase in the number of real estate transactions,” the speaker said.

“This influx of investment has the potential to catalyze increased construction activities, job creation, and overall economic growth associated with the real estate industry,” he stated.

He went on to say that a wider range of investors might be attracted by the golden visa’s improved qualifying requirements. By reorienting the emphasis from a set down payment to the whole property value, the golden visa program may become more accessible to people with varying levels of income.

According to Mr. Abou Harb, “The rule change appears to be a strategic response to market dynamics, seeking to fortify Dubai’s real estate sector in the face of predictions of a potential price drop.”

The government may be proactively addressing market downturns by expediting the golden visas application process in an effort to promote resilience and sustainable growth. The speaker expounded on the initiative’s potential to attract fresh investors and boost the self-assurance of existing participants. This might lead to a favorable attitude that could support the stability and sustained growth of the real estate market in the United Arab Emirates.