The recent UAE decision to scrap the AED1 million ($272,294) minimum down payment requirement for Golden Visa scheme will play a key role in attracting foreign investment and help catalyse the growth in real estate sector, said a key real estate brokerage.

 

Previously, to qualify for the Golden Visa, a 10-year renewable residency programme through real estate investment,  which was introduced in 2019, investors were required to acquire property valued at AED2 million or above.

 

"The removal of this financial threshold widens the doors for a more diverse pool of investors, fostering increased engagement in the property market. This not only benefits international investors but also bolsters the overall development and prosperity of the UAE economy," remarked Farooq Syed, the CEO of Springfield Properties.

 

This will pave the way for diverse investor opportunities and help foster greater investor participation and deepen ties with residents, he stated.

 

Recent figures from Dubai Land Department reveal that the emirate's real estate market has reached unprecedented heights, witnessing 1.6 million transactions in the previous year, reflecting a notable 17% surge compared to the preceding year. 

 

Transaction values skyrocketed to Dh634 billion ($172.6 billion), with 166,400 deals in 2023, marking a remarkable 20% and 36% increase in value and volume, respectively, he added.

 

According to him, investment inflows witnessed a remarkable 55% surge, with 42% of new investors originating from international markets, underscoring Dubai's global allure.

 

"We anticipate that this progressive move will ignite a surge in interest in real estate investment opportunities across the UAE, propelling demand for residential and commercial properties. As a forward-thinking company, we are poised to adapt to these evolving market dynamics, offering tailored real estate solutions to meet the diverse needs of investors and residents alike," noted Syed.

 

"The potential elimination of the minimum down payment requirement is in alignment with the UAE's vision of cultivating a business-friendly ecosystem and positioning itself as a leading global hub for investment and innovation. We eagerly anticipate the positive impact of this decision on the real estate sector and the broader economy," he added.-TradeArabia News Service