Way cleared for Dubai’s offplan buyers to get Golden Visas on Dh2m property asset. Select developers and estate agents to issue recommendations on investors’ behalf
Another breakthrough moment for Dubai’s offplan property market? The Dh2 million investment scheme towards a 10-year residency visa should set off another round of increased demand for offplan buys, says market sources. Image Credit: WAM
Dubai: The way has been cleared for offplan property buyers in Dubai to be granted UAE Golden Visas, provided their investment value totals Dh2 million and over. Select developers and estate agents can submit recommendations to the immigration authorities that these buyers have met the investment guidelines and can be issued with the 10-year residency status.
Developers are forming internal teams to liaise with the authorities and advise investors on the processes required for the Golden Visa programme. It was last week that the UAE confirmed the new rules for longer term visas – 5- and 10-year – would be effective from October 3. Developers had been awaiting such a go-ahead, expecting the move to immediately benefit their offplan prospects.
The 10-year Golden Visa programme for property owners with Dh2 million in such assets had been the most eagerly anticipated. The Dh2 million replaces the Dh10 million requirement needed earlier. It was felt that this move would trigger increased demand from end-user buyers and investors alike. The formalisation of the process for investors – and developers – on offplan purchases should be felt almost instantly, according to market sources.
“There has already been burgeoning demand in the real estate sector because of the visa scheme,” said Muhammad Imran Khan, Executive Director of Atomic Properties. “Now, with further ease in applying for the same, we have seen the anticipated increase in demand as more people look to move to Dubai, especially through offplan sales.”
On existing and ready property sales, visas linked to Dh2 million schemes have already been issued. Offplan sales in Dubai between June to end September have already hit new highs, with the August figures delivering the best monthly run in 10 years.
Onus on developers
Developers/estate agents have to guide the process from the offplan buying to clearing the eligibility for the Golden Visa, provided the all-important Dh2 million mark is cleared. “It could be a single property, or a combination of property assets totalling Dh2 million and over,” said a market source. “Once the developer submits the needed documents to the Dubai Land Department on the investment value, then the Oqood certificates get issued. If the value if shown as Dh2 million and over, the process towards a Golden Visa issuance is straight-forward.”
If the offplan property is bought through a mortgage, then the Net Asset Value calculations kick in. The buyer should be seen to have cleared the Dh2 million benchmark. “A Dh50,000 payment on a Dh2 million property would not be enough,” said an industry source. “That Dh2 million investment has to be there on the ground.”
Even then, the sheer fact that the processes are now in place opens up another round of growth possibilities for the Dubai and UAE property market. And provide just the necessary impetus for developers to fast-track offplan launches in the coming days.
DEVELOPERS ASSIGN DEDICATED TEAMS FOR GOLDEN VISA
“We have already assigned a dedicated team to handle all Golden Visa procedures on behalf of our clients. This team will ensure seamless knowledge transfer between our buyers and relevant authorities, will assist in gathering all required documentation, and will oversee the entire process, from the initial application all the way to the visa being granted.
“We look forward to this with great excitement and are eager to support those who invest with us, with the Golden Visa initiative being a landmark move that not only underlines the UAE’s outstandingly welcoming nature, but will also see real estate investment numbers surge exponentially.
“This team is ready – it consists of part customer service staff, part documentation/authorities staff.”
– Farhad Azizi, CEO of Azizi Developments
As published in Gulf News, By Manoj Nair, Business Editor