The UAE visa residency system announced that real estate investors may perhaps obtain a Golden visa when purchasing a property worth not less than AED 2 million. This has paved the way for many Dubai residents to merge or invest their properties to reach the AED 2 million milestone to be entitled for long-term residency in the UAE.
Imran Farooq, CEO of Samana Developers commented on the Golden Visa saying that the Golden visa is a cherry on the cake to motivate people to buy more. It is also a great tool to retain people post Dubai Expo 2020. People earlier used to buy one-bedroom properties, and now they’re trying to club deals to reach the AED2 million mark so that they can get the Golden visa.
He added that the demand for two-bedroom units has increased while many investors are taking two one-bedrooms to reach the AED2 million mark.
The CEO also stated that the company has seen around 35 to 40 per cent of the customers merging two properties to reach the AED2 million breakthrough to get the Golden visa. The top buyers of the properties for the Golden visa are mainly Africans, Europeans, and nationals of the CIS-Commonwealth of Independent States.
The company has also initiated a one-stop service to support customers in obtaining Golden Visa, and has helped almost 80 customers to obtain Golden Visa.
The Dubai-based developer aims to launch two more properties in July and August and has launched six projects to date.
Investors in Property to get Golden Visa
A Nigerian national Paul (name changed on request) said he has purchased multiple properties from different developers in Dubai, entitling him to get the Golden Visa.
Yuan Li (name changed on request), a Chinese national, has bought three properties in Dubai. He said that the main reason for buying property is to avail the Golden visa. He said he had AED3-4 million and wanted to get the Golden Visa by investing in property.
How to obtain Golden Visa through real estate investment in the UAE
- Purchasing a property worth AED2 million or higher.
- Merging or associating properties to total up the value of AED2 million or higher.
- Investing in an off-plan property worth a minimum of AED2 million and pay instalments-this would reduce the burden on the customers, not having to invest a lump sum amount one-off
- Taking a loan from local banks on the condition that the value of the property is a minimum of AED2 million.
- Married couples can take up joint investments in a AED2 million-property in order to fit in the admissibility criteria.
- This is applicable for properties bought from approved developers as per the statement.
Samana CEO Imran Farooq said that overall momentum of the Dubai real estate sector is extremely good and the Golden Visa scheme is helping to create more records in the real estate market. Adding on, he stated that the successful handling of the Covid-19 pandemic is also encouraging investors in selecting Dubai as a destination.
Ayman Youssef, vice-president, Coldwell Banker, UAE said they get quite a high number of enquiries from clients with respect to buying a property to obtain a Golden Visa. They foresee that the Golden Visa is a great driver for investors to buy a property in the UAE. In a matter of time, the company would see more and more investments being made for this reason.
Youssef was quoted saying that the laws permit people to merge properties to be eligible for the Golden Visa. This has encouraged people to invest in additional properties to achieve the minimum requirements for a Golden Visa. For instance, if previously a person owned property less than a million, they are now considering buying an additional property to make up for the balance.
The founder and chairman of Danube Group, Rizwan Sajan said the Golden visa and Residency Visas are linked to property ownership and are attracting more investment into the UAE’s real estate market, although there are many other good reasons for foreigners to buy properties.
Sajan added saying, that the Dubai real estate market offers one of the highest returns in terms of rental yield adding on to the appreciating value of properties that makes investment a very rewarding proposition. In addition, world-class infrastructure, global connectivity, quality of life and a safe environment make real estate investment in the UAE a wise decision.