Way cleared for Dubai's off plan buyers to get Golden Visas on AED 2m property asset
The way has been cleared for off-plan property buyers in Dubai to be granted UAE Golden Visas, provided their investment value totals Dh2 million and over. Select developers and estate agents can submit recommendations to the immigration authorities that these buyers have met the investment guidelines and can be issued with a 10-year residency status.
Developers are forming internal teams to liaise with the authorities and advise investors on the processes required for the Golden Visa programme. It was last week that the UAE confirmed the new rules for longer-term visas – 5- and 10-year – would be effective from October 3. Developers had been awaiting such a go-ahead, expecting the move to benefit their off-plan prospects immediately.
The 10-year Golden Visa programme for property owners with Dh2 million in assets had been the most eagerly anticipated. The Dh2 million replaces the Dh10 million requirement needed earlier. It was felt that this move would trigger increased demand from end-user buyers and investors alike. The formalisation of the process for investors – and developers – on off-plan purchases should be felt almost instantly, according to market sources.
On existing and ready property sales, visas linked to Dh2 million schemes have already been issued. Off-plan sales in Dubai between June to end of September have already hit new highs, with the August figures delivering the best monthly run in 10 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 totalling 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 is shown as Dh2 million and over, the process towards a Golden Visa issuance is straight-forward.”
Mortgage purchases
If the off-plan property is bought through a mortgage, then the Net Asset Value calculations kick in. The buyer should be seen to have cleared the Dh2 million benchmark. “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 then, the sheer fact that the processes are now in place opens up another round of growth possibilities for the Dubai and UAE property market. And provide just the necessary impetus for developers to fast-track off-plan launches in the coming days.