Dubai: Demand for Golden Visa prompts investors to increase budget and developers to increase unit size – News

Demand for properties valued at Dh2 million has skyrocketed following Dubai’s discontinuation of requiring a minimum down payment of Dh1 million to be eligible for 10-year residency.

Industry executives say many property developers in Dubai are increasing apartment sizes to meet growing demand for Dh2 million properties, while investors with more than Dh1.5 million in investments are also increasing their budgets to reach the 10-year residency eligibility threshold of Dh2 million. .

Since the introduction of the Golden Visa for property investors, demand for real estate has grown exponentially, attracting massive foreign investment and encouraging existing tenants to turn to property to avoid rising rents in the city.

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In January, Dubai removed the requirement for a minimum down payment of Dh1 million to qualify for the Golden Visa, giving a boost to the growing real estate sector. This has resulted in more diverse buyers entering the local market.

Farooq Syed, CEO of Springfield Properties, said demand for properties that make buyers eligible for the Golden Visa has grown exponentially.

“We are receiving many clients from Syria, Iran, Pakistan and other nationalities who do not have a strong passport, who are moving from one room to a two-room to qualify for the 10-year residency. One of the clients was about to buy a Dh1.9 million property, but he changed his mind and decided to go for a Dh2 million property because he could qualify for the Golden Visa. Clients who want to invest more than Dh1.5 million are increasing their budget to Dh2 million now,” Syed said. Khaleej Times.

“Even promoters are now opting for slightly larger sizes to accommodate these customers. I know a developer who priced his units at Dh1.8-1.9 million, but then decided to increase the size of the units to accommodate the growing number of customers who wanted to buy Dh2 million for Golden Visa. “, added.

Imran Farooq, CEO of Samana Developers, said there is strong interest in Dh2 million properties and the new regulation has created a spin-off trend with buyers opting for 2 and 3-bedroom options worth Dh2 million. or more.

Under the new system, he said, a buyer who pays the minimum down payment of 10 percent or registers with the Oqood (Initial Sales Contract, a digital certificate provided by the Dubai Land Department when a property is off-plan or in a payment plan). ) makes you eligible for the Golden Visa.

“The new rule is expected to turn tourists into long-term residents of Golden Visa holders. The tourist, especially the new one, feels confused when it comes to getting the right agent, visiting different properties and then deciding which one is right for him. Off-plan options make your life easier and your investment safer,” Farooq said.

Generally, he said, an off-plan market has a down payment trend of 15 to 20 percent, depending on the payment option selected by the buyer. “That means that for a property purchase of Dh2 million, Dh300,000 or 15 per cent is practically the down payment to be eligible for the Golden Visa. And again, the amount of the down payment depends on the choice of location and the type of property,” he said.

Massive demand

Sijo José, Betterhomes team leader, said the UAE recently abolished the mandatory minimum down payment of Dh1 million to qualify for a Gold Visa, with the aim of promoting greater residency and investment in the country.

“In the latest update, eligibility for a Golden Visa is granted to buyers investing in off-plan properties if the project is under construction and has completed between 40 and 50 percent of the construction, with the minimum down payment determined by the developer, generally ranging from 20 to 30 percent of the purchase price,” he said.

José added that removing the minimum down payment requirement for the Golden Visa could spur greater demand for properties valued at Dh2 million.

“By reducing barriers to entry, particularly through reduced down payments, properties become more accessible to a wider range of buyers and investors. This improved accessibility is expected to stimulate demand within this price range. However, the overall impact on demand will depend on several factors, including economic conditions, investor confidence and the specific dynamics of the Dubai real estate market,” he said.

Muhammad Binghatti, CEO of Binghatti Holding, said Golden Visa was instrumental in many buyers coming and finding Dubai’s property market lucrative.

“Almost every buyer I have heard of above a certain investment value is always interested in Golden Visa. So it has helped drive the market. Many people, families and companies come to Dubai to settle here and want this 10-year residency visa,” he said.

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