In a move set to revitalize the Dubai real estate market, the emirate has scrapped the minimum down payment requirement for Golden Visa eligibility through property purchase. This new, mortgage-friendly policy broadens the door for investors seeking long-term residency, unlocking significant opportunities for both potential residents and the city's property landscape.
Previously, investors needed to commit a minimum of Dh1 million upfront to qualify for the coveted 10-year Golden Visa through property ownership. Now, all that matters is the final valuation, with no restriction on how the purchase sum is paid. This means mortgaged properties exceeding Dh2 million – a threshold met by most Dubai dwellings – qualify, regardless of the initial down payment.
"This is a game-changer," affirms Firas Al Mssadi, CEO and Founder of fäm properties.
"It opens the Golden Visa to everyone with a mortgage, essentially encompassing most property buyers in Dubai." With flexible payment plans spanning monthly installments to extended schemes, coupled with attractive mortgage options financing up to 80% of the property value, the path to residency has become significantly smoother.
This policy shift resonates with market trends. Cash transactions, while prevalent, haven't kept pace with the surge in property prices, particularly in desirable areas like Palm Jumeirah and Downtown Dubai. Data revealed in the third quarter of 2023, mortgages comprised only 33% of transactions compared to 67% cash deals. However, with anticipated interest rate drops of up to 100 basis points, 2024 is poised to witness a surge in mortgage uptake, further amplified by this Golden Visa incentive.
For Dubai, this move unlocks potential beyond individual visa applications. "Increased affordability will attract global talent and entrepreneurs, bolstering the emirate's economic vibrancy," explains Fadi, Head Of Sales in fäm properties
"With their families eligible for the same 10-year residency, it fosters long-term commitment and fosters a more stable, diverse resident population."
In conclusion, Dubai's Golden Visa liberalization signals a strategic shift, making residency readily accessible and fostering a mortgage-powered future for its dynamic real estate market. This move stands to attract a wider range of investors and entrepreneurs, contributing to the emirate's continued economic and social dynamism.