UAE Cancels Minimum Down Payment for Golden Visa

In an attempt to encourage residents and potential investors to gain a renewed interest in the real estate market of the country, the UAE has canceled the minimum down payment of 1 million Dirham that was earlier needed for people to apply for a golden visa.

Introduced in 2019, the said amount was the qualifying bar for people to qualify for a golden visa and it compelled investors to acquire properties valued at least 2 million Dirham, minimalizing the pool of potential candidates. 

The UAE, being one of the biggest economies in the world that attracts business opportunities from around the globe has made numerous shifts in the past several years to bring about various game-changing legal, social, and economic reforms as part of uplifting the FDI (Foreign Direct Investment) of the nation, that in turn, will gain the attention of skilled workers from around the world.

With this new move, irrespective of the type of property one plans to own, be it mortgaged or not mortgaged, completed, or off-plan, as long as the value of the property is set at 2 million Dirhams or more, any investor can qualify for the golden visa.

As for those who bought the properties through installment plans or mortgages, they had to make a minimum down payment of 1 million Dirham or 50% of the value of the concerned property to the developer or the bank in order to qualify for the golden visa. With the new rule change, there will be no minimal down payment.

The changes are however not yet reflected on the official website of DLD (Dubai Land Department), which is a service dedicated to support investors and potential clients who want to qualify for golden visas.  Neither have the changes been made to the website of Dubai’s General Directorate of Residency and Foreigners Affairs. 

The DLD, however, has still maintained the fact that the eligibility criteria for obtaining the golden visas still remain the same. The property that is being bought has to be valued at a minimum of 2 million Dirhams.  

The golden visa, which remains valid for a period of 10 years, motivates extraordinary foreign investors and workers to set up their ties in the Emirates. The government introduced amendments in 2022 in order to simplify the eligibility criteria alongside increase the number of categories of beneficiaries. 

Entrepreneurs, investors, and skilled professionals who have a monthly earning of more than 30,000 Dirham can qualify for this golden visa that remains valid for a decade. Furthermore, scientists and allied professionals, brilliant students and graduates, extraordinary talents, frontline heroes, and pioneers who make positive changes on humanitarian grounds are also eligible for this golden visa.

As most properties are valued at more than 2 million Dirhams, it is believed that this change in the policy will widen the horizon of people who can benefit from it, making them eligible for the golden visa, something that they previously couldn’t apply for. 

Economists also opine that by giving easier access to the golden visa, the government will be in a better position to counteract the downturns in the real estate market, thereby helping foster sustained resilience and growth. By installing a new-found confidence in not only new investors but also existing investors, the long-term vitality of the UAE’s real estate market will be established.

Boosting new confidence in buyers, all mortgage buyers will be able to qualify for this 10-year visa while also being able to sponsor both their family and domestic staff. The chances of opening up conversations with potential investors from overseas have exponentially increased with this move who will now have the ability to apply for the visa with minimal investment.

This move will not only revive domestic purchases but will also invigorate foreign investors to the real estate market of the UAE. Another point to be noted is that this change applies not only to specific Emirates but the entire country. 

Property acquisitions will be more accessible with the breaking of the financial barrier associated with it which, in turn, will promote a surge in real estate transactions. Besides, the bigger inflow of investment both from domestic and foreign sources is believed to play a positive role in employment generation, construction activities, and overall growth of the country’s economy.

Essentially, this rule change is believed to be part of a strategic move to enhance the market dynamics in the country that will facilitate the Dubai real estate sector in the backdrop of potential affordability.

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