Golden Visa 101: Benefits for Dubai Real Estate Developers

According to data from Dubai Land Development (DLD), the real estate market in Dubai recorded AED 22.7 billion in sales in June, the highest volume in thirteen years. Real estate developers are looking to take advantage of the Golden Visa program as demand for real estate in the UAE grows.

As part of the UAE's strategy to attract more investments and increase long-term resident benefits, those who purchase off-plan or with a mortgage can obtain a 10-year Golden Visa. As such, this is a gateway for developers to reach success.

Read on to learn more about the Golden Visa and its benefits for all of Dubai’s real estate.

The Process of the Golden Visa

Acquiring a Golden Visa involves providing approximately Dh2 million. A Dh2 million investment is required for permanent residency under the proposed Golden Visa property investment rules. This is a significantly lower cost as compared to the previous mandate of Dh10 million.

Homebuyers and property owners may benefit from this as well. Abdullah Alajaji, CEO of niche luxury project developer Driven Properties, claims that the Golden Visa protects their investments. The monetary value of the Visa incentive may be difficult for developers to estimate, but the incentive increases the likelihood that their product will sell.

Alajaji believes that the Golden Visa provides investors with additional security. Visa's incentive may be difficult to quantify for developers, but it increases the sales potential of their product.

Some developers have already included this in their SPAs (Sales Purchase Agreements), and more will follow suit, as well as government-affiliated developers.

Golden Visa for Developers and Buyers

Developers are now promising buyers who invest a certain amount that they will handle all paperwork and other processes once authorities give their approval. This will undoubtedly bring in a new season that will increase demand for 10-year visas based on real estate investments.

Due to this event, many off-the-plan developments will be purchased by first-time buyers as well. Meanwhile, the majority of the off-plan inventory worth Dh2 million has been sold. More off-plan launches are then needed in Dubai to attract Golden Visa investors.

The targeted buyers have been unaffected by the 20-30% increase in property values over the last year. Now, they will want to get a Golden Visa.

According to developers, the new wave of buyers wants the Golden Visa as soon as possible and wants to buy a single unit. These buyers are not looking to buy multiple properties totaling Dh2 million.

The goal is to obtain a Golden Visa and one unit. Developers, on the other hand, should not overcharge.

Developers commit to completing paperwork and other processes once authorities approve buyers who meet the investment threshold. As the new season approaches, demand for 10-year visas backed by real estate will skyrocket.

Developers are likely to continue waiving or sharing Dubai Land Department registration fees and offering longer-term service charge freezes. Following a one- or three-year initial freeze on service fees, a large number of buyers saw significant increases. Developers may then be asked to estimate future price increases.

The Growing Interest

Indian buyers are interested in Dubai property, according to Zoom Property Insights, and the visa is the most recent incentive.

According to Ata Shobeiry, CEO of Zoom Property, an unrestricted self-sponsored visa makes it possible for property investors.

Indians are the most active buyers of Dubai real estate, followed by the British, Italians, and Russians. According to Zoom Property, "significant investments" have been made by investors from France, Canada, Pakistan, and Egypt.

According to Imran Farooq of Samana Developers, he has not received Dubai Land Department regulations. The Federal Authority for Identity, Citizenship, Customs, and Port Security (ICA) will implement new Golden Visa rules in September.

Conclusion

Indeed, one of the most significant life investments is to own property. In Dubai, this is proving to be a consistent trend as homebuyers and real estate developers pursue methods to attract even more interest in the market. Now that you are more informed about the Golden Visa, discuss it with your trusted real estate professionals.

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