Dubai changes requirements for golden visa applicants
Publication date: 02.02.2024
UAE authorities have removed the minimum down payment requirement of Dh1 million ($272,294) to qualify for the golden visa, industry sources said. Now a deposit of ≈ 10% of the cost of housing is enough.
Let us remind you that a resident visa in the UAE can be obtained: for 2 years – when purchasing real estate in the amount of 1 million dirhams (about $270,000) or for 10 years – from 2 million dirhams (about $545,000).
Now the conditions for obtaining a renewable 10-year “golden visa” in the country have changed. Previously, for properties bought with a mortgage or installment plan, a minimum of Dh1 million - or 50% of the property's value - had to be paid to the bank or developer to be able to apply for 10-year residency.
Now this down payment requirement has been removed, which will open the way for even more foreign investors. Experts called the government's move a kind of "trump card" to prevent a downturn in the real estate market, which analysts and the media have long been talking about.
According to experts, the innovation opens up a “golden visa” for everyone who has a mortgage in Dubai. This will benefit many buyers and also opens up the possibility of a Golden Visa for almost anyone who has bought a property, as most properties in Dubai are priced at over AED 2 million.
According to analysts, the vast majority of transactions in Dubai are carried out using own funds (without a mortgage). In the third quarter of 2023, there were 8,238 mortgage transactions in the Dubai property market, compared to 16,485 equity transactions. However, the number of home buyers choosing a mortgage in 2024 should increase as interest rates are expected to fall by up to 100 basis points.