Dubai: Golden Visa demand boosts investor budgets, developers expand unit sizes
After Dubai eliminated the minimum down payment requirement of Dh1 million for Golden Visa eligibility, there has been a significant increase in the demand for properties valued at Dh2 million. To meet the rising demand for properties valued at Dh2 million, real estate developers in Dubai are presently enlarging apartments.
Investors with investments exceeding Dh1.5 million are also adjusting their budgets to reach the Dh2 million threshold required for the 10-year residency. Since the introduction of the Golden Visa for property investors, the real estate sector has experienced significant growth, attracting substantial foreign investment and encouraging tenants to transition to property ownership to avoid escalating rents.
In January, Dubai revised the Golden Visa eligibility criteria to stimulate growth in the real estate sector. This change has diversified the buyer pool in the local market, attracting interest from various nationalities seeking long-term residency. Farooq Syed, CEO of Springfield Properties, noted a surge in demand from nationalities with weaker passports, prompting buyers to upgrade from one-bedroom to two-bedroom properties to qualify for the 10-year residency. Developers are also adjusting their offerings to accommodate this demand, with some opting to increase unit sizes to cater to buyers seeking Golden Visa eligibility.
Imran Farooq, CEO of Samana Developers, highlighted the heightened interest in Dh2 million properties and observed a trend where buyers opt for larger unit sizes to meet the eligibility threshold. Under the revised system, buyers making a minimum down payment of 10 percent or registering with Oqood are eligible for the Golden Visa. This change is expected to attract tourists looking to become long-term residents and investors seeking safer investment options.
Sijo Jose, team lead at Betterhomes, emphasized that the removal of the minimum down payment requirement for the Golden Visa could stimulate increased demand for properties valued at Dh2 million. Muhammad Binghatti, CEO of Binghatti Holding, echoed these sentiments, noting that the Golden Visa has significantly contributed to the attractiveness of the Dubai real estate market, with many buyers expressing interest in obtaining the 10-year residency visa.
