Sudden Surge in Golden Visa Demand: What's Driving this Change?

The government of UAE has been taking initiatives to attract investors in the country. They've established an environment conducive to business growth, maintained tax-free zones, and introduced long-term residency programs. Previously, expatriates were restricted to short-term visas and required sponsorship for visa acquisition. The 2019 introduction of the Golden Visa program allowed expatriates to obtain a 10-year residency. As of Nov 2022, 152,000 Golden Visas were issued. By 2023, there was a notable 52% surge in Golden Visas issued in the first half of the year compared to the previous year's corresponding period.

Numerous categories fall under the Golden Visa, with real estate investment being one of the most prominent. Initially, investors were required to purchase property worth at least AED 2 million and make a down payment of AED 1 million to qualify for 10-year residency. However, a significant change was announced in January 2024: the AED 1 million down payment stipulation was eliminated. Continue reading below as we explore its implications for investors, property values, and the overall dynamics of the Dubai real estate market.

Change in Investors' Mindset

The allure of securing long-term residency has shifted investors' preferences towards properties valued above 2 million AED to qualify for the Golden Visa. Even those initially considering properties at 1.5 million AED are now willing to stretch their budget to meet the visa requirement. Additionally, interest in larger unit sizes has surged, with investors now opting for 2-bedroom properties to meet the eligibility criteria for the Golden Visa.

Change in Developer's Strategies

Developers have swiftly adapted to the changing landscape, recognizing the demand for properties eligible for the Golden Visa. Many have adjusted unit sizes to ensure properties are valued at 2 million AED or higher. This strategy has seen developers increase unit sizes to meet the burgeoning demand, thereby catering to investors seeking residency eligibility. The removal of the 1 million AED down payment requirement has further fueled demand, particularly for off-plan properties where lower initial payments are now required for Golden Visa eligibility.