The latest Golden Visa overhaul is set to become a major game-changer for the UAE real estate sector

In order to attract more foreign investments and talents, the UAE recently initiated new Golden Visa regulations. Among other expected improvements, the latest visa overhaul is set to become a drastic game-changer for the local real estate industry. This is due to the fact that now, when buying a secondary or off-plan property for AED 2M (USD 545K), which can easily be mortgaged, you can become eligible for a 10-year Golden Visa. On top of that, under the latest adjustments, entrepreneurs, exceptional talents, scientists, professionals, outstanding students and graduates are all among eligible individuals for this type of visa.

The Dubai real estate sector has already registered record-breaking growth in 2021 with a total of 52,000 transactions, following a strong recovery after the pandemic. At the same time, the diversity offered by the new Golden Visa regulations will provide UAE residents with strong reasons to invest in the country long-term, and will enable non-residents to make the UAE their second home. In particular, the possibility of obtaining a Golden Visa via investing in a mortgaged or off-plan property will definitely appeal to young professionals, who will be able to afford a home while still contributing positively to the country’s development.

It is safe to say that granting off-plan real estate investors with UAE residency will have the largest impact, and it is highly likely that off-plan developments will witness a spike in demand as a result. This is due to the fact that purchasers are no longer obliged to have a title deed of a completed property in hand. Nevertheless, it is still not clear whether this will lead to any consequences on the resale market, as demand in this sector is fuelled by end users rather than investors in the first place.