Sign in
Sign up
Real estate developers in Dubai are focusing on 2-bedroom apartments and townhouses as on ideal investment options for buyers who wish to purchase a property for AED 2 million and receive a golden visa.
An investor's down payment should be AED 200,000. It is 10 % of the investment value of AED 2 million required for obtaining a visa. The rest can be paid in installments by the developer. Property developers are now actively involved in creating suitable projects. So soon, there will be many competitive offers for real estate investors. Let us remind you that, previously, it was necessary to spend AED 10 million for a 10-year residence permit.
If the buyer wants to get a visa through a mortgage, the down payment should be AED 500,000 for 25% of the total investment. Today, there are other countries in the world that have various investment schemes for obtaining residency status. But the updated UAE terms represent the best ratio of price and quality on a global scale.
Developers and real estate agents say that it's incredibly important to find a way to ease market entry for buyers who don't have AED 2 million in cash for a one-time purchase. Direct transaction schemes with developers are essential in this context. They attract buyers who do not have the total requested amount at once.
Some golden visa applicants may be new residents of the UAE, so they will need to wait some time before becoming eligible for bank mortgages. In this connection, property developers will be able to offer alternative investment options and they can speed up transactions, which is beneficial to all participants.
Two-bedroom apartments come to the fore
In the new investment space, two-bedroom apartments and townhouses can become the "gold standard" for investors. Based on current market valuations, both formats will easily overcome the AED 2 million bar, but will not exceed the approved budget.
In Dubai, there are several places that meet the requirements. In Sharjah, Arada projects offer affordable options, and in Abu Dhabi, investors can consider Bloom Living (Bloom Properties), Reem Hills (Q Properties) and Al Jubail Island in addition to Aldar projects. In fact, there are plenty of off-plan projects, so developers just need to change their payment schemes slightly so that buyers can have the opportunity to get a visa.
Market stability
The new golden visa rules will increase the stability of the real estate market in a subtle but significant way. So, when the market is booming, many property owners give up renting their housing in favor of selling it. For tenants, it means high precariousness and possible eviction at any given time. With the introduction of new rules, homeowners will be more interested in renting out their apartments or houses so that their “golden visa” does not burn out. This will have a positive effect on tenants in the UAE.
