Policy Shift in the UAE: Scrapping Minimum Downpayment for Golden Visa through Real Estate Investment

In a significant change to immigration policies in the UAE, the government has decided to eliminate the minimum down payment requirement for obtaining a golden visa through real estate investment. Industry sources have indicated that there is no longer a need to pay one million dirhams or a certain percentage of the property value to apply for this visa

According to the revised policy, investors must acquire a property valued at 2 million dirhams or more to qualify for the golden visa, a renewable residency scheme valid for 10 years introduced in 2019

Previously, investors were required to make a minimum downpayment, either one million dirhams or a specified percentage of the property value, to the bank or developer when purchasing through mortgage or installment plans. With this cancellation, investors can now secure a golden visa with a 2 million dirham investment, whether the property is completed, off-plan, mortgaged, or not mortgaged

This decision comes amid expectations of a 5-10% decline in property prices in Dubai over the coming months, a sector crucial to the emirate's economy. Industry insiders view this policy change as a strategic move by the government to boost the real estate sector and attract more investors

With this alteration, experts anticipate an increase in demand for properties valued below 2 million dirhams. Investors are expected to capitalize on the opportunity to initiate the golden visa process with lower-priced properties

This shift aligns with the government's efforts to diversify the economy away from oil, offering longer residencies for various investor categories. It also comes at a time of heightened economic competition with neighboring Saudi Arabia, which recently introduced new residency incentives to attract skilled workers and investors