Dubai: It’s the time for Golden Visas – and developers in Dubai sure know that. Developers are lining up offplan launches from September targeted at investors wanting to take the Golden Visa route.
And the way to do it? Offer more choices in the crucial Dh2 million and just over range. Because under the proposed property investment rules for Golden Visas, a Dh2 million commitment is what it will take to get the longer term residency. That’s down from the Dh10 million earlier.
“For property buyers. the Golden Visa is an added layer of security they can rely on with their investments,” said Abdullah Alajaji, CEO of Driven Properties, which specializes in niche luxury projects. “For developers, it may be difficult to put an exact economic value to the Visa incentive they are offering, but it does expand the selling possibility for their product.
Some developers have already included this provision in their SPAs (Sales Purchase Agreement), more will do so, and even semi-government developers joining in.
Help with Visa process
Developers are already offering commitments to buyers who cross the investment mark that they will get all the paperwork and other processes done once the authorities give the all-clear. The demand levels to use property investments for the 10-year visa is in for a significant increase with the imminent start of a new season.
“A lot of the new offplan buying will be from first-time buyers wanting newer projects to commit to,” said a developer source. “Most of the available offplan inventory – priced in the Dh2 million range – are already gone. If Dubai is to attract more Golden Visa investment subscribers, the property market needs additional offplan launches.
“These buyers are not fazed by the 20-30 per cent increase in property values in these 12 months. They have only one mission – be eligible for a Golden Visa.”
Developers say the new wave of buyers want to get the Golden Visa pronto, and for them the intent is to buy that one single unit that can get them there. “These buyers are not in the mood to chase bargains or get to the Dh2 million mark by buying more than one property,” said an estate agent.
“One unit and direct to the Golden Visa, that’s the intent. But they will not want to see inflated prices from developers.”
Developers will likely maintain the current incentives of waiving or sharing in the Dubai Land Department registration charges and also offer longer term commitments on freezing service charges. (Developers may also be asked to provide indicative rates on hikes after that, after may buyers got hit with sharp increases after a one- or three-year initial freeze on service fees.)
“The decision to buy my own property was not just for investment purposes, but also because of family ties and being part of a close-knit community,” says Sid, who is regional vice-president at a tech company.
The two-bedroom apartment comes with an outsized balcony space in one of the tallest towers in the Marina.
“I liked the layout, facilities within the building and it also offers multiple car parking options, including for guests).”
- Hina Navin Bhatia, Special to Gulf News
Interest from everywhere
In a new update from Zoom Property Insights, Indian buyers keep renewing their interest in Dubai property, and the visa is the latest incentive.
The fact that it’s a self-sponsored visa that comes without any limitations pertaining to moving in and out of the region makes it feasible for property investors
Indians lead the list of property buyers in Dubai, followed by those with UK, Italy, and Russian passports. Investors from France, Canada, Pakistan, and Egypt ‘have also made significant investments’, according to Zoom Property.
We have not yet received any guidelines from Dubai Land Department. We expect it in a few days when the Federal Authority for Identity, Citizenship, Customs, and Ports Security (ICA) will start implementing new rules for the Golden Visa from September.
- Imran Farooq of Samana Developers
“Once Golden Visa starts being issued, we will educate them on every step such as the document required for the medical test and Emirates ID. For each investor, we will dedicate a support staff who will accompany the applicant at the Dubai Land Department, at medical center, and the Amer Center during the entire process of the visa application.
“Golden Visa benefits include the removal of the maximum number of support service workers – such as maids – that could be brought in under the visa. Family members of the Golden Visa holder will be permitted to stay in the UAE for the duration of the visa in the event of the death of the person who obtained the Golden Visa.”
- Imran Farooq, CEO of Samana Developers
