In a significant move, the UAE has abolished the Dh1 million ($272,294) minimum down payment previously mandatory for individuals seeking golden visas through real estate investments. The decision aims to attract more citizens and investors to establish long-term residences in the nation, signaling a shift from previous regulations.

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

Maroun Abou Harb, an associate at BSA Ahmad bin Hezeem & Associates, confirmed that the recent change completely eliminates the need for a minimum down payment. Investors are now eligible for the golden visa if the property’s value is Dh2 million or more, regardless of its completion status, being off-plan, mortgaged, or not.

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Despite this amendment, official platforms like the Dubai Land Department’s Cube website and the General Directorate of Residency and Foreigners Affairs website have yet to reflect the change. The Dubai Land Department informed The National that the eligibility requirements for real estate investors to obtain golden residency remain the same, requiring a minimum property value of Dh2 million.

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BSA Ahmad bin Hezeem & Associates learned of the modification on January 22, according to Maroun Abou Harb, emphasizing that no official circular has been issued yet. Jess Stephenson, head of sales progression at Dubai property broker Allsopp & Allsopp, shared that awareness of the change came during a visit to the Cube, where golden visa applications are handled.

The UAE’s economic reforms, including the Golden Visa initiative launched in 2019, aim to attract skilled labor and increase foreign direct investment. The recent adjustment to golden visa eligibility is expected to benefit a broader spectrum of property buyers, allowing even those using mortgages to apply. This change is anticipated to boost buyer confidence and stimulate the real estate market.

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Real estate agents express optimism about the government initiative, anticipating positive impacts on the real estate market. The modification is seen as a strategic response to market dynamics, potentially countering market downturns and fostering sustained growth and resilience in the UAE’s real estate sector.

As the UAE continues to refine its policies to attract investors and residents, the removal of the minimum down payment requirement for golden visas is poised to have far-reaching effects on the real estate landscape, encouraging a diverse group of investors and contributing to the overall economic growth of the nation.

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