UAE Golden Visa will draw new property investors as Trump tariffs reshape markets

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Dubai: The competition from other Gulf states is getting intense - but the UAE’s Dh2 million (or more) property-linked Golden Visa investment program is still the one to beat.

This matters because after the events of last week, with the Trump tariffs shaking and stirring markets, a new cohort of global investors might be looking for a safe and stable marketplace for their funds.

Any asset that offers the least volatility and with a better chance to withstand market cycles is just what investors want. Especially after a week like the last.

“Also, unlike in 2008, the Dubai property market is seeing none of the heavy speculation – it’s serious buyers making serious investments now,” said the CEO at a leading developer. “The Golden Visa property investment program fits right into what new investors – and even many residents – want. This is why the UAE Golden Visa will remain the most coveted whatever be the competition.

“Depending on the location and property, it’s the best minimum Dh2 million investment buyers can make anywhere.” 

The best part is new investors come into a market where property values have stabilized. The double-digit increases in offplan prices of the 2022 early 2024 period are no longer there. In fact, some areas have even gone through a mini price drop, making it easier for investors.  

Industry sources say new buyers would be the best boost that Dubai’s ready homes can get. More homes will soon be delivered, and in particular focus will be those in the Dh2 million plus range. Because that’s the requirement to be eligible for a UAE Golden Visa, and with recent rules allowing buyers to get the 10-year residency without having to pay the minimum Dh1 million on a Dh2 million home buy.

“We are seeing a large number of interested Golden Visa applicants opting for property purchases exceeding Dh2 million to secure longer-term UAE residency,” said Libbie Burtinshaw, Head of Operations at the consultancy Sovereign PPG. 

“Although location-dependent, outside of studio and one-bedroom apartments, the average home in a suburban (Dubai) community will typically surpass the Dh2 million threshold, making obtaining a Golden Visa alongside a property purchase a viable option for foreign investors.

“For a property investment (backed) Golden Visa, we are seeing it take on average between 7-10 working days to obtain.”

Some of the other GCC states are running their versions of the long-term residency programs, with Saudi Arabia making a determined push to open up its residential property market to foreign investors. The minimum investment – SR4 million.

“Over a 5–7 year horizon, they expect property prices in Riyadh and Jeddah to double, and the overall Saudi property market volumes to grow 4–5 times,” said Vasily Fetisov, Managing Partner at the consultancy Housebook. “A key driver of this growth would be a rise in the share of foreign buyers — from just a few percentage points today to at least 50% within that timeframe.

“For now, the SAR 4 million threshold for obtaining a Golden Visa (ikama) remains high, even for many HNWIs, since Saudi Arabia is often viewed as one element of a diversified global real estate portfolio, rather than a core investment destination.”

Other factors will play into the hands of GCC GV programs. Some of the established investment destinations in the West are hiking - or plan to hike – taxes on property. Spain, for one, has dropped its Golden Visa program. And there’s always the worry that some of these economies might impose a tax on the super-wealthy.

“In terms of enquiry numbers and visa processing, the UAE currently far outperforms other regions as it not only has a larger residency program offering, but has also generally become a very sought-after destination to live and work,” said Libbie. 

In many ways, the UAE’s property-backed Golden Visa program has more miles to clock in.

Nearly all the GCC countries offer some sort of Golden Visa options or long-term residency programs. “Most have higher investment requirements and more stringent eligibility criteria, making it less attainable and less enticing than the options currently offered by the UAE,” said Libbie Burtinshaw of Sovereign PPG.

“We are actively seeing other GCC countries adjusting and improving their residency offerings to be able to compete and attract foreign investment after the success of the UAE’s programs.”

In Saudi Arabia, the projects are becoming ever more ambitious, whether it’s from the government or private sector (such as the Trump Tower). And there are more developers wanting to get in.

“We are currently working with three Russian developers who are actively exploring the Saudi Arabian market for residential and commercial projects, including hotels and co-living concepts,” said Vasily Fetisov, Managing Partner of Housebook.

“Two of these developers are already running projects in the UAE and have experience of expanding to international markets — from legal frameworks and fund transfers to land acquisition and construction in GCC countries. The third developer operates in CIS markets (Uzbekistan, Azerbaijan) and has a focused interest in entering the Saudi market.”