United Arab Emirates: Demand for Golden Visa grows among European real estate investors – News

There is strong and growing demand for the UAE Golden Visa among European real estate investors purchasing assets in Dubai.

Real estate industry executives aware of the matter said some are buying properties in Dubai just to get the 10-year residency.

They said investors from Switzerland, Germany, France, the United Kingdom and other European countries are increasingly seeking to benefit from the tax-free income, safety and security offered by the Emirates, as well as high returns on investments in the Emirates. real estate markets.

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“Yes. There is great interest from European buyers in the Golden Visa market as they can sponsor family members and domestic workers without needing a work visa. They can also spend more time in the UAE than with a visa. tourist. As Golden Visa holders, they can open bank accounts and operate as residents here,” said Jess Stephenson, head of sales progression at Allsopp & Allsopp Group.

Jess Stephenson

The 10-year residency visa has been a game-changer in attracting top talent from around the world. In addition, real estate investors, professionals, entrepreneurs, scientists and outstanding students are also eligible for the Golden Visa.

According to the General Directorate of Residency and Foreigners Affairs (GDRFA) – Dubai, Dubai has seen a 52 percent increase in the number of Golden Visas issued in the first half of 2023, compared to the same period last year.

Since the launch of the Golden Visa for real estate investors, demand for luxury and ultra-luxury properties has increased substantially in Dubai as thousands of millionaires moved to the emirate. They enjoy security for their families, a first-class education and a modern lifestyle.

According to Betterhomes, investors from the UK, Russia, Italy, France and Turkey ranked in the top 10 in 2023 in terms of top property buyers.

Buy property for Golden Visa

Miloš Antić, vice president of DHG Properties, stated that the company has already sold some units to Swiss and Serbian investors. “Everyone knows Dubai. We have already sold 15 percent of [our] units, and the majority of buyers are European. We have sold many units to [investors from] Serbia, Switzerland and Germany.”

Milos Antic

“We are seeing an influx of German buyers… a lot of people are moving to Dubai because they don’t want to pay taxes,” he said.

“For them, a price of 1,200 or 1,400 dirhams [per sqft] It is a fraction of what they pay on the outskirts of their cities. By reducing the minimum down payment requirement for Golden Visa, [the UAE has] opened the doors for more buyers to come to the market. Although Europeans do not need a Golden Visa to enter the country, they love it and many are buying properties for it,” Miloš Antić told Khaleej Times in an interview.

Imran Farooq, CEO of Samana Developers, said there is demand for the Golden Visa around the world, but the greatest interest is seen among European real estate investors.

“The Golden Visa cannot be compared to the arrival visa or the visit visa. It gives the investor and his family the right to stay for a long time. Generally, when people want to live in a country, they want proper residency rather than staying on a visit visa and leaving every six months. Also, when someone’s family moves to Dubai, they want to rent property, buy a car, send children to school, and many other related things. All this is not possible with a visit visa. The Golden Visa is a long-term residence for people who wish to maintain a prolonged stay here. It also helps in efficient tax planning,” Farooq said.

Imran Farooq

Citing an example, he said France was planning to introduce a new tax, so a large number of French citizens began looking for alternative passports or long-term residences. He said this trend can also be seen across Europe.

“The law and order situation is not as good as in Dubai. Europeans feel more comfortable moving to a much safer place. Furthermore, the ease of doing business and low-tax jurisdiction are some of the key incentives pushing Europeans to seek long-term residences here.”

High yields

Farooq Syed, chief executive of Springfield Properties, said the emirate’s property market is increasingly attracting the interest of European investors, driven by the appeal of high rental yields and capital appreciation.

“Factors such as the stability of the economy, strong real estate growth, advanced infrastructure and strong security measures contribute to this attraction. As the European economy faces challenges due to the Ukrainian crisis, many investors are turning to Dubai as the safe option for more profitable investment prospects. Investors from countries such as Germany, Switzerland, France and the United Kingdom are prominent players in the Dubai real estate market,” Syed added.

Farooq Syed

Compared to other European cities such as London, Berlin and Monaco, Syed added, Dubai offers better value for real estate investment.

“Acquiring a Golden Visa offers European investors many benefits when exploring opportunities in the UAE. It allows investors to secure ownership of properties in Dubai, taking advantage of the city’s thriving real estate market, which has demonstrated remarkable growth,” said the CEO of Springfield Properties.

Not only investors but also property developers from Europe are flocking to the emirate to cash in on the high yields. Switzerland-based DHG Properties recently launched its first project in Jumeirah Village Circle (JVC), with strong interest from European investors.

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