Offplan property buyers in Dubai can now apply for UAE Golden Visas if their investment is worth more than Dh2 million. Select developers and real estate agents can recommend to immigration authorities that these buyers have met the investment guidelines and should be granted 10-year residency status.
Developers are forming internal teams to communicate with authorities and advise investors on the Golden Visa program’s procedures. The UAE confirmed last week that the new rules for longer-term visas – 5- and 10-year – would go into effect on October 3. Developers had been anticipating such a decision, believing that it would immediately benefit their off-plan prospects.
The most eagerly anticipated programme was the 10-year Golden Visa programme for property owners with Dh2 million in such assets. The Dh2 million replaces the previous Dh10 million requirement. This move was expected to increase demand from both end-user buyers and investors. According to market sources, the formalization of the process for investors – and developers – on off-plan purchases should be felt almost immediately.
“There has already been burgeoning demand in the real estate sector because of the visa scheme,” said Muhammad Imran Khan, Executive Director of Atomic Properties. “Now, with further ease in applying for the same, we have seen the anticipated increase in demand as more people look to move to Dubai, especially through off-plan sales.”
Visas linked to Dh2 million schemes have already been issued for existing and ready property sales. Offplan sales in Dubai have already reached new highs between June and September, with August figures delivering the best monthly run in ten years.
Onus on developers
Developers/estate agents have to guide the process from the off-plan buying to clearing the eligibility for the Golden Visa, provided the all-important Dh2 million mark is cleared. “It could be a single property, or a combination of property assets totaling Dh2 million and over,” said a market source. “Once the developer submits the needed documents to the Dubai Land Department on the investment value, then the Oqood certificates get issued. If the value if shown as Dh2 million and over, the process towards a Golden Visa issuance is straight-forward.”
Mortgage purchases
If the off-plan property is purchased with a mortgage, the Net Asset Value calculations apply. The buyer should be seen to have met the Dh2 million limit. “A Dh50,000 payment on a Dh2 million property would not be enough,” said an industry source. “That Dh2 million investment has to be there on the ground.”
Even so, the mere fact that the processes are now in place opens up fresh possibilities for growth for the Dubai and UAE property markets. And provide just the impetus developers need to accelerate off-plan launches in the coming days.