UAE Golden Visa: Why More Employees With 10-Year Residency Buy Dubai Properties

(MENAFN- Khaleej Times) The UAE professionals holding Golden Visa are increasingly buying properties in Dubai to beat rising rentals as they intend to stay in the emirate longer, making sure they get a higher Return on investment (RoI) by purchasing properties at a lower price.

The long-term residency visa is awarded to investors and professionals across various categories such as doctors, engineers in different fields, PhD degree holders, outstanding students, scientists and others.

Stay up to date with the latest news. Follow KT on WhatsApp Channels.

In 2023, Golden Visas were granted to 158,000 people in Dubai alone, which gives the 10-year residency holders in the Emirates multiple exclusive benefits such as re-entering the country without restriction even when they stayed outside UAE for more than six months , not needing a sponsor, and not having to deal with maximum limit on the number of support workers and others.

Michael Gelpke, CEO at Glam Properties, said the majority of the 158,000 Golden Visa holders own property in the emirate or have invested in local real estate.

“This surge is largely attributed to recent policy changes that have made it easier to qualify for a Golden Visa through property investment, including the removal of the Dh1 million minimum down payment requirement.

"Additionally, high returns on investment, with high rental yields, and rising property prices have attracted investors. The UAE's economic stability, world-class infrastructure, and strategic location further enhance its appeal," Gelpke added.

Dubai's property market saw record transactions this year, driven by demand from Golden Visa holders, foreign investors, and residents who want to beat the rising rents .

“There's a noticeable shift towards an end-user market, with investors planning long-term residency. Demand for high-end properties is increasing, and the off-plan property segment is growing consistently,” highlighted Gelpke.

Anmoll D Shroff, founder and chairman of Elton Group, said Dubai witnessed a significant increase in property buying by professional Golden Visa holders as it gave them a lot of confidence about their long-term prospects in the country.

“A lot of bankers, doctors and artists who have 10-year residency have bought properties in Dubai as they can plan on a long-term basis. Also, investment avenues are appealing because the return on investments is good and property prices per square foot are very reasonable. So a lot of factors have made it appealing for professionals possessing Golden Visa to invest in the real estate market," Shroff underlined.

He also noted that“not being dependent on anyone for visas is also a big confidence boost among residents and investors.”

Akshay Nagdev, business head at Foremen Fiefdom, said professionals holding Golden Visas are buying significantly more properties now than before, largely driven by Dubai's recent policy change, which eliminated the requirement of a minimum down payment of Dh1 million for the 10-year residency visa, boosting interest in properties valued at Dh2 million and above.

“Dubai's more accessible and attractive visa policies have played a significant role, alongside developers offering special incentives targeted specifically at visa holders. Additionally, Dubai's stable economy, tax benefits, and high quality of life make it an attractive investment destination. Buyers also appreciate the flexibility to invest in off-plan properties.

“Overall, the combination of favourable visa policies, economic stability, and targeted incentives has created a thriving real estate market for Golden Visa holders in Dubai, leading to a significant increase in property purchases compared to the previous year,” said Nagdev.

Nagdev added that professionals holding Golden Visas in Dubai are increasingly opting for larger and high-value units as well as properties that offer high rental yields.

“Property developers are responding to this demand by expanding the size of apartments and other residential units to attract these investors. The current market scene shows a high demand for luxury villas among those looking for spacious and high-end living options. Key locations such as Dubai Marina, Downtown Dubai, and Palm Jumeirah are popular due to their luxurious lifestyles, vibrant city life, and iconic landmarks,” he said.

“Golden Visa holders who wish to sponsor and bring their families look for larger homes that can accommodate their needs, driving significant interest in such properties. High-end apartments in key districts are also sought after, especially those within gated communities that offer enhanced security and amenities, along with a touch of sustainability for peace and tranquillity. Properties near business districts like DIFC are highly favoured due to their strategic location,” Nagdev underlined.

He also also said Golden Visa professionals are more interested in off-plan properties because of their flexible payment plans.

According to Michael Gelpke of Glam Properties, professionals holding Golden Visas in Dubai prefer properties in prime areas.

“Gated communities that offer a range of amenities are among the preferred areas. Popular areas include Dubai Marina, Jumeirah Village Circle (JVC), Dubai Hills, Downtown Dubai, Emirates Hills, and Palm Jumeirah. These locations are known for their luxury amenities, high-rise towers, and prime beachfront properties.”

Anmoll D Shroff said professionals prefer to buy 2-3 bedroom apartments and townhouses in prominent locations.

“Most preferred high-end locations such as Downtown, Business Bay, and Dubai Hills areas as these professionals enjoy high income. Also, many new people coming to Dubai are not much aware of remote areas and how to commute. So they prefer Downtown and neighbouring areas,” added Shroff.

ALSO READ:

• Dubai's property appeal soars amid competitive cost of living and robust real estate market

• Dubai real estate to see steady growth as more serious buyers invest in local markets

• Dubai: Residents, investors opt for off-plan units due to lack of affordable listing

• UAE Golden Visa holders: 7 exclusive benefits granted to long-term residents

MENAFN07072024000049011007ID1108414267