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Developers in Dubai are focussing on two-bedroom apartments and townhouses as the ideal investment options for investors to meet the Dh2 million target. And pick up that Golden Visa. Image Credit: Stefan Lindeque/Gulf News

Dubai: Planning for a Golden Visa with a Dh2 million property investment. Then try this payment formula.

The down payment needs to be Dh200,000 (10 per cent of the Dh2 million investment value to be eligible for the Visa) and developers’ instalment schemes can take care of the rest. This is what developers are working on and there will be multiple competitive offers coming property investors’ way. The first of these Visa-linked schemes could hit the market as soon as the Eid holidays are over. (The earlier requirement was Dh10 million for a 10-year residency.)

If the buyer wants to do it through a mortgage, the down payment would be Dh500,000 for 25 per cent of the investment. “This is beyond affordable, because not all these Golden Visa property investments need only be through cash sales,” said Firas Al Msaddi, CEO of fam Properties. “There are other countries that offer investment schemes for residency – but the UAE’s updated Dh2 million represents an unbeatable value-for-money on a global scale.

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According to Firas Al Msaddi of fam Properties: “Offplan as well as mortgage buyers, will be far more motivated to keep their property ownership, pay their instalments on time and think long-term about residency in the UAE.”

Affordability mix

Developer and property brokers say that it’s vital ways are found to ease entry for those buyers who do not have the full Dh2 million in funds available for an outright purchase. This is where direct-from-developer schemes are vital, to convince new investors to go through an instalment scheme – and at the same time make sure they have the Dh2 million equity to qualify for a Golden Visa.

“Many wanting to sign up for Golden Visas may be new residents in the UAE – and would have to spend a certain time to qualify for mortgages from banks,” said a developer. “This is where developers can offer alternate investment options and speed up the transaction.”

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One of Arada's projects in Sharjah, the 'Masaar' Image Credit: Supplied

2-bedroom apartments to the fore

In the new investment space, two-bedroom units and townhouses could be the ‘gold standard’ for investors. Both formats would – based on current market valuations – conveniently break the Dh2 million mark and there are multiple locations in Dubai that fit the bill. In Sharjah, Arada’s projects have these options and in Abu Dhabi, apart from Aldar projects, investors will be checking out Bloom Living (from Bloom Properties), Reem Hills (Q Properties), and Al Jubail Island.

“The offplan projects are already there – and developers only need to tweak their payment schemes just a little to meet the visa eligibility,” said an estate agent. “Currently, all of the UAE’s main property investment destinations have ready and offplan choices for investors seeking a Dh2 million investment.”

Market stability with less flipping
On both rentals and sales, the Dh2 million Golden Visa schemes will 'enhance' stability for the property market.

"When market is on an upswing, landlords become sellers to realize profits from resales," said Firas Al Msaddi of fam Properties. "The number of eviction notices are hundred times higher than in the past five years, notifying the properties are up for sale.

"On the other hand, tenants are holding on to their existing rented homes as current market rates are often much higher than what they signed up for. With the new Golden Visa rules, many property owners with a visa registered to their properties understand they have to hold on to keep their visa valid, which means more stability for tenants too."