UAE Cancels Minimum Down Payment for Golden Visas

The move aims to entice more citizens and investors to establish long-term residences in the nation

According to sources, the UAE has eliminated the Dh1 million ($272,294) minimum down payment needed for individuals to be eligible for a golden visa through real estate investment to entice more citizens and investors to establish longer-term residences in the nation.

Before 2019, investors had to purchase property valued at Dh2 million or more to be eligible for the 10-year renewable residency program. However, to qualify for the golden visa, buyers of properties purchased through mortgages or installment plans had to pay the bank or developer a minimum down payment of Dh1 million, or 50% of the property’s value.

Maroun Abou Harb, an associate at the legal firm BSA Ahmad bin Hezeem & Associates, claims that the recent change completely does away with the requirement for a minimum down payment. According to him, investors are now eligible for the golden visa if the property is worth Dh2 million or more, regardless of whether it is completed, off-plan, mortgaged, or not.

On January 22, BSA Ahmad bin Hezeem & Associates was notified of the modification, according to Abou Harb. “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.

The UAE, which has the second-biggest economy in the Arab world, has made several legal, social, and economic reforms recently to draw in skilled labour and increase foreign direct investment.

In 2019, the Emirates launched the Golden Visa initiative. The ten-year visas are intended to incentivize foreign investors and exceptional workers to forge closer ties with the nation. In 2022, the Golden Residence Initiative underwent modifications aimed at streamlining the qualifying standards and broadening the range of recipients.

Investors, entrepreneurs, skilled professionals making more than Dh30,000 ($8,167) per month, scientists, professionals, exceptional talents, exceptional students and graduates, real estate investors, pioneering aid workers, and frontline heroes are all eligible for the 10-year visa.

“This policy change would benefit many buyers and end users as this will open up the golden visa option to pretty much everybody who’s bought a property, because most properties are valued at more than Dh2 million,” Stephenson said. “That way, all mortgage buyers would be able to apply for the golden visa, and then they can also sponsor their family and domestic staff. This means there would be more buyer confidence in the city, too.”

According to Matthew Gregory, branch director of Betterhomes, a real estate company, the “excellent government initiative” would help stimulate the real estate market in the meantime. “This enables us to have positive conversations with potential clients, especially from overseas, and help them get on the property ladder and obtain a visa even quicker with a minimal investment,” he said.

You only have to buy a property worth Dh2 million, but you don’t have to hold equity of the same value. If you buy an off-plan unit, you just need to pay the down payment, which for some is only Dh 50,000, and be eligible for a golden visa.

Matthew Gregory
Branch Director, Betterhomes

According to him, to qualify for a golden visa before this, investors had to own equity in the property worth more than a specific amount. “This meant you couldn’t do it for off-plan properties because you didn’t have equity until you fulfilled a large percentage of the payment plan.”

“The rule change may serve as a strategic response to market dynamics, aiming to bolster Dubai’s real estate sector amid predictions of a potential price drop,” Abou Harb said. “By facilitating easier access to the golden visa, the government could be proactively counteracting market downturns, ensuring sustained growth and resilience. This move may not only attract new investors but also instill confidence in existing stakeholders, fostering a positive sentiment that could contribute to the stability and long-term vitality of the UAE’s real estate market.”