UAE's Golden Visa and Its impact on the property market

The UAE has consistently been a favoured destination for international investors. Now, with the introduction of the UAE Golden Visa, the country is further enhancing its appeal to individuals interested in buying properties, launching a business, or high-net-worth individuals. This 10-year visa is a complete game-changer! You will experience long-term security, outstanding benefits, and significant opportunities for investment. But, how will this impact the real estate market in the UAE? It's been thriving recently. So, let's delve further and gain a better understanding of it.

The rise of the UAE Golden Visa

Traditionally, to live in the UAE, you had to have a job and renew your residency from time to time. But now, with the new golden visa for investors, the government has changed the game. This visa lets people who are buying property stay in the UAE for a long time, making it even more appealing for expats and foreign investors.

In order to qualify for a UAE golden visa by investing in real estate, individuals must invest a minimum of AED 2 million (approximately USD 545,000) in residential properties. Whether it's during the construction phase or already completed, you have the option to invest in a single property or multiple units. The demand for new homes in the UAE, especially in premium areas like Dubai Marina, Palm Jumeirah, and Downtown Dubai, has significantly increased due to this change.

The impact on the UAE property market

The golden visa has led to a significant rise in property purchases, boosting the demand for both luxury and mid-range real estate. This is the impact it's having on the market -

• Increased foreign investment - Since people can stay in the UAE long, more overseas investors are coming in, causing a property market boom. The freedom to live, work, and start businesses without needing someone to sponsor you is a big draw for rich people and entrepreneurs worldwide.
• Rise in property prices - As demand for new homes for sale in the UAE continues to grow, property prices are witnessing an upward trend. Top spots like Dubai and Abu Dhabi are seeing high sales, especially for fancy villas and apartments.
• Stability and confidence in the market - The golden visa has led to an increase in investor confidence in the future growth of the UAE, reducing market instability. In contrast to temporary residency programs, this 10-year visa fosters a sense of belonging to the community, encouraging expatriates to invest in real estate rather than renting.
• Boom in off-sale deals - Developers are capitalising on this trend by releasing highly attractive off-plan projects ideal for individuals seeking a golden visa. International buyers are highly interested in these properties due to their flexible payment options, attractive rental returns, and the potential for long-term residency.

Why is the UAE Golden Visa a top choice for global investors?

Investors favour the UAE because of its lack of taxes, strong infrastructure, and thriving business environment. Investors find the golden visa especially attractive for the following reasons -

• Zero income tax - In contrast to other residency-by-investment programs, the UAE is unique in that it does not impose an income tax on residents, making it especially attractive to entrepreneurs and business owners.
• Good rental yields - Dubai and Abu Dhabi have some of the best rental yields in the world, usually around 5-8%. This means that property investors can expect to make a good profit.
• Lifestyle perks - Families in the UAE get to enjoy fancy living, great healthcare, and excellent schools, contributing to a high quality of life.
• Visa Flexibility - With the golden visa, you can bring your family, including your spouse, kids, and household staff, giving everyone in the family some stability.

What's coming up next in the UAE's housing market?

With the golden visa still pulling in high-net-worth individuals and business owners, the property game in the UAE looks set to keep booming. This is changing up the real estate game. The UAE is working hard to mix things up in the economy and make it easier for investors. It's becoming a hot spot for people looking to invest in property worldwide.

The UAE golden visa offers more than just residency - it provides opportunities for long-term investments and ensures financial stability in the future. This is the ideal time to explore the incredible opportunities in the UAE for individuals looking to obtain a 10-year residency visa by investing in the highly dynamic property market.

If you're looking for your ideal home in the UAE, take a look at the latest properties with us! Contact us for more information!