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Property buyers in Dubai are no longer required to make a minimum down payment of Dh1 million to qualify for the Golden Visa as the government has eased the criteria for real estate investors.
If the property's value exceeds Dh2 million, owners opting for a payment plan or mortgage can apply for the long-term visa. The owner can apply for a 10-year residence permit regardless of the amount paid in advance, the head of one of the local companies explained.
Dubai’s General Directorate of Residency and Foreigners Affairs website has not yet been updated to reflect the change.The Department of Lands (DLD) has not yet responded to a request for comment.
“No circular has been sent out yet, although when we visited the DLD at The Cube, where they handle the golden visa applications, that’s where we were made aware of this change,” said Jess Stephenson, head of sales progression at Dubai property broker Allsopp & Allsopp.
According to Jess Stevenson, the innovation opens up a “golden visa” to everyone who has a mortgage in Dubai. "If you pay in 20 per cent of the property's value, which most people do for a mortgage, they would be eligible for the visa," she said.
Stevenson noted that this would benefit many customers. This opens up the possibility of obtaining a Golden Visa for almost anyone who has purchased a property, as most properties in Dubai are valued at more than Dh2 million.
The payment plans for housing in Dubai range from 1% monthly to plans from 5 to 25 years after the initial down payment. When it comes to a mortgage, it is possible to finance up to 80% of the property's value.
According to real estate consultancy and advisory firm ValuStrat, the vast majority of transactions in Dubai are completed 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.
Sources: The National, Khaleej Times
Photo by Jeshur Jacinto on Unsplash
