The Golden Visa Program and Its Impact on Dubai’s Real Estate Market

The Golden Visa of UAE is a long-term residency plan offering a renewable visa period ranging from 5 up to 10 years. This plan aims at skilled professionals, entrepreneurs, or investors and specialized talents in numerous sectors. Among the most fascinating provisions for property investors is the long-term residency earned through buying real estate. In most cases, or rather for real estate investors, the golden visa requirements of the UAE include an investment threshold level in property. The newer amendments mention the eligibility of an investor by applying for this visa after buying a property with valuation of a minimum AED 2 million. This program actually extends further flexibility by allowing property purchasers to apply for the Golden Visa UAE Eligibility even for unfinished properties.

The Golden Visa Benefits are not singular but manifold, extending beyond merely acquiring residency. Property investors enjoy a number of advantages that make Dubai more attractive than most global cities.

1. Long-Term Residency and Stability: While most visas are typically valid and may need renewal after every couple of years, long-term residency and stability are guaranteed with the Golden Visa Dubai; with an eligibility of 10 years, it has proved itself as a choice perfect for families or individuals wanting to avoid the hassle associated with renewing visas regularly.
2. Ownership of Prime Real Estate: The Golden Visa UAE means investors have ownership of freehold property in certain areas of the emirates, something not permissible for every other foreign investor. 
3. Tax-free Environment: The Dubai administration has very friendly tax laws, with no levies on property, inheritance or capital gains, making for a very attractive destination for investors skimming through for maximum Returns on Investment.
4. Global Business Hub: Dubai hosts a healthy business environment, access to diversified global markets, an infrastructure that is world-class, and a government committed to enhancing its status as a business hub. The Golden Visa Program goes in tune with this vision by attracting not only investors but also skilled professionals, adding to the global pool of talent in the city.

Dubai's real estate sector has substantially benefited since the inception of the Golden Visa Program. We now discuss a few of them:

1. Increased Demand for High-End and Luxury Properties: The Golden Visa Dubai has led to an increased demand for premium and luxury properties. Major hubs like Palm Jumeirah, Dubai Marina, and Downtown Dubai now show an increased demand brought by investors all over the globe. The allure of living in an internationally recognized city, that offers every conceivable high-end amenity and a tax-free environment, has driven demand for luxury apartments and villas.
2. Expansion of Emerging Real Estate Zones: Areas such as Dubai South and the Dubai Islands have gained interest from investors looking for more affordable alternatives while still meeting the Golden Visa UAE Requirements. As more developers start designing projects to fit the criteria for the program, the market is branching out, and the options for investors at different price levels are increasing.
3. Increase in Off-Plan Sales: Following the success of the Golden Visa UAE, developers have realized a significant surge in the sale of off-plan properties, as international investors have started showing great interest in committing investment funds to properties yet to be delivered. This has become notably evident in newly developed locations such as Dubai Creek Harbour and the emerging Dubai Islands where investors have shown increased interest with the aim of long-term appreciation in their capital.

There have been certain regions which have emerged as some of the most favored investments amidst all the applications to be considered for the Golden Visa Dubai. These regions have earned a reputation for offering luxury apartments and ensuring high returns.

• Dubai Marina: High rental yields, luxury apartments, and high-rise structures along with proximity to major business districts make it an ideal choice to meet Golden Visa UAE eligibility. 
• The Palm Jumeirah: Properties in this area come in the form of large villas and apartments. These normally command higher prices and carry unparalleled views and world-class facilities. 
• Dubai South: This area offers affordable housing and is conveniently placed near Dubai's new international airport and Expo 2020 site. 
• Dubai Islands: An emerging area attracting families and investors, Dubai Islands promises green open areas, family-friendly amenities, and close proximity to Dubai's business districts. With the use of sustainable construction techniques and ensuring a high standard of living, Dubai Islands is likely to observe consistent demand and growth in coming years.

Among the cities offering Golden Visa Programs, Dubai stands out with a mix of tax benefits, a luxurious lifestyle, and protection for investors. For example, London and New York have similar residency-by-investment programs, but the Golden Visa Dubai offers a much more favorable tax environment and lower cost of entry in terms of property prices, especially in the luxury sector.

Furthermore, Dubai provides, on average, a rental yield at 6-8%; this makes the city one of the highest in the world for rental income and at the same time a highly attractive choice for international investors looking for profitable real estate investments.

The process of application for a UAE Golden Visa is very straightforward, given that an individual meets the eligibility criteria. Here's how you can apply:

Step 1: Determine Your Eligibility

Firstly, identify the category to which you belong: investor, entrepreneur, special talent, student, or property owner.

Ensure you meet the minimum investment or achievement criteria for your chosen category.

Step 2: Prepare the Required Documents

• Passport copy
• Recent photo
• Proof of eligibility (e.g. Documents showing investment, property ownership certificate, academic certificates, or proof of work experience).
• Any other documents that may be particular to your category

Step 3: Submission of Application

• Apply through the GDRFA website or the ICA portal.
• Some applicants may opt to apply through approved UAE-based business centers or consultancies for facilitation.

Step 4: Payment of Fees

• Visa application fees vary depending on the category and period of time.
• Ensure you complete the payment to move forward with your application.

Step 5: Approval

• The time of processing for UAE Golden Visa applications is different, but normally it takes a few weeks.
• Once approved, you will obtain your residency permit that lets you have long-term residency in the UAE.

Answers to common questions about the UAE Golden Visa, including eligibility, benefits, and application process.

Golden Visa applies to investors who have invested in property worth not less than 2 million AED. The property investment should either be fully owned or financed through the approved banks. Off-plan properties in some of the projects may also apply, with regard to the minimum investment threshold.

Yes, Golden Visa holders have full ownership of properties, and they can further lease out their investments to obtain rental income. This is a financial gain for long-term return investors.

Golden Visa holders can also sponsor their immediate family, including spouses and children, providing residence to the whole family. With this, it attracts expatriate families looking for stability and access to Dubai's world-class education and healthcare systems.

Not only does Dubai not levy property tax or capital gains tax, but it also does not tax returns from rental income. The concept of tax savings, coupled with security under a golden visa, would raise the bar for Dubai as a prime real estate investment destination. Interested in learning more? Contact experts at LYM Real Estate to explore the Dubai real estate market!

Yes, many banks in Dubai offer mortgage options for property purchases. However, the combined value of the down payment and the financed amount must meet the AED 2 million threshold to qualify for the UAE Golden Visa. 

Yes, it is possible to consolidate a property value of over AED 2 million if the properties are in the name of the investor and have also satisfied all requirements under the said program.