In Dubai, property buyers are no longer obliged to make a minimum down payment of Dh1 million to qualify for the Golden Visa, as the government has relaxed the criteria for real estate investors. Regardless of the upfront payment amount, owners can apply for the 10-year residency, as explained by an executive.
If the property’s value exceeds Dh2 million, owners choosing a payment plan or mortgage can still apply for the long-term visa, as revealed by Khaleej Times. An executive explained that the owner can apply for the 10-year residency regardless of the amount paid upfront.
“Off-plan properties could be considered on a case-by-case basis. Applicants need to submit the title deed of the property, a letter from the developer or a mortgage document from the bank, and their passport copy along with a photograph,” said Firosekhan, managing director of Dubai-based Profound Business Service.
Similar to all Golden Visa holders, owners can sponsor their spouses, children, and parents for the same 10-year period.
Jess Stephenson, head of sales progression at Allsopp & Allsopp Group, confirmed to Khaleej Times that the minimum payment of Dh1 million is no longer a requirement. The eligibility criterion is now solely based on the property’s value of Dh2 million or more for investors to obtain the Golden Visa. She stated, “There is no minimum equity investment.”
Stephenson pointed out that this change opens the visa to everyone with a mortgage. “If you pay in 20 per cent of the property’s value, which most people do for a mortgage, they would be eligible for the visa,” she explained.
This development is expected to benefit numerous buyers and end-users, making the Golden Visa option accessible to almost anyone who has purchased a property in Dubai, as most options are valued at more than Dh2 million. “All of the mortgage buyers would then be able to apply for the Golden Visa,” Stephenson added.
Payment plans for Dubai-based homes vary from 1 per cent monthly to five- to 25-year schemes after an initial down payment. Regarding mortgages, up to 80 per cent of the property value can be financed.
Property prices in the UAE, particularly in Dubai, have experienced substantial growth in the past few years, reaching their peak in 2023. Led by the luxury segment, prices have nearly doubled in high-demand areas such as Palm Jumeirah and Downtown.
According to real estate consultancy and advisory firm ValuStrat, cash buyers constitute the majority of transactions in Dubai. In the third quarter of 2023, the Dubai real estate market saw 8,238 mortgage transactions compared to 16,485 cash deals. However, the number of property buyers opting for mortgages in 2024 is expected to rise as interest rates are anticipated to drop by up to 100 basis points.
The UAE’s long-term residency is self-sponsored and open to investors, entrepreneurs, scientists, outstanding students and graduates, humanitarian pioneers, and frontline heroes.
Publish January 24, 2024
Source: https://www.khaleejtimes.com/life-and-living/visa-and-immigration-in-uae/uae-golden-visa-dubai-drops-minimum-down-payment-required-for-property-owners
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