Apartments in UAE are a trend that has gone far beyond an aspect such as square meters. There is another benefit that doesn’t seem so unambiguous at first glance.
The rapid growth of the real estate market in the United Arab Emirates continues to break records, with over 36,500 properties sold in the first quarter of 2024 alone, a 27% increase over the same period last year. This unprecedented growth is mainly due to attractive residency programs for foreign investors, which make the UAE one of the most promising destinations for real estate investment. Dubai, which ranks sixth in the world in terms of GDP per capita at $96,000, offers investors the opportunity to purchase luxury real estate and gain long-term residency in one of the world’s most dynamic regions.
Residency programs for buyers of real estate in the UAE
The residency visa system in the UAE has undergone significant changes in recent years, becoming more flexible and attractive to international investors. There are now two main routes to residency through the purchase of real estate:
- The standard two-year visa;
- The prestigious 10-year gold visa.
The minimum entry threshold for the two-year visa is AED 750,000 (approximately $204,000), making the program accessible to a wide range of investors. Of particular note is the gold visa program, which requires an investment of AED 2 million (approximately $544,000) or more. This type of visa offers extended benefits and more excellent stability due to its long validity period. Notably, popular real estate service companies in the UAE do not remain in the minds of investors due to their high-profile names but are associated with top-notch service. They often include special departments dedicated solely to supporting clients under the golden visa program.
An essential aspect of both programs is the ability to purchase real estate in installments or through a mortgage. In this case, for a standard visa, the down payment should be at least 50% of the value of the object or not less than 750,000 dirhams. For a golden visa, it is enough to contribute 20% of the value, which significantly reduces the entry barrier for potential investors.
The property must be located in designated Freehold zones where full foreign ownership is allowed. Such zones exist in all significant emirates, but the largest number of them are concentrated in Dubai. Investors can purchase residential and commercial real estate, including apartments, villas, office space or retail space. At the same time for the golden visa is allowed to buy objects at the construction stage, although the visa itself will be issued only after the completion of construction.
Read also: Where to live better: Dubai or Abu Dhabi?
Statistics show that the number of golden visas issued increased by 52% in the first half of 2023 compared to the same period the previous year. More than 150,000 golden visas have been issued since the program was launched in 2019, indicating a high demand for this residency tool. However, a legitimate question arises: What specific perks does a residency visa holder receive besides residency rights?
Advantages of residency visa for real estate owners
Residency status in the UAE opens access to many opportunities far beyond the simple right to reside. Resident visa holders gain access to premium banking services, can open accounts with local and international banks, transact with cryptocurrencies and utilize investment products. Comfort and flexibility are not just limited to transactional matters. For example, the apartment concierge service available to residents of premium complexes provides the highest level of comfort and security.
The ability to include family members on the principal applicant’s visa is of particular value. Spouses, minor children, unmarried daughters of any age and parents can obtain residency status for the same period as the principal applicant. This creates unique opportunities for family immigration and long-term future planning.
Residents have access to internationally recognized medical facilities in the area of healthcare. The UAE leads the world in the number of JCI-certified clinics, and health insurance for residents starts at a very affordable AED 550 per year.
Application and visa application process
Obtaining a resident visa through real estate investment is a well-structured process that takes an average of two months.
- It starts with a preliminary security check, which helps to identify potential problems before the primary application process begins.
- Parallel with the preparation of documents, the selection and purchase of real estate take place. Technology makes it possible to conduct the entire process remotely, including virtual tours of properties and online document signing. After the transaction is finalized, the investor receives an electronic copy of the certificate of ownership, one of the key documents for obtaining a visa.
- The next important step is a medical examination, which is conducted at accredited UAE clinics. It includes a fluorography and blood tests for absence of dangerous infections. The medical certificate is issued within a few days and is a mandatory document for obtaining a resident visa.
- Biometric registration and document submission take place in specialized public services centers. After that, the final Due Diligence check begins, which usually takes 5 to 30 days. In case of a positive decision, the applicant receives an electronic visa and a UAE resident identity card (Emirates ID).
- Special attention should be paid to the visa extension process. Property owners can extend their residency status unlimited times, provided they retain ownership of the property. The extension procedure is much more straightforward than the initial visa application and usually takes no more than two weeks.
Read also: Sample sales contracts for foreigners: a comprehensive guide to real estate transactions in the UAE.
Financial obligations and additional costs
The UAE offers some of the most transparent terms and conditions compared to other popular real estate investment destinations. For example:
- In Portugal, the minimum investment for a ‘golden visa’ is €500,000,
- in Greece – €250,000,
- in Spain, €500,000,
- in Malta – €300,000,
- and in Cyprus the program is closed.
The associated costs for a two-year UAE visa are about AED 9,912 ($2,700) and AED 9,734 ($2,650) for a ten-year gold visa. These include medical examinations, Emirates ID, visa fees and administrative costs. A 4% transfer tax (2% each on the seller and buyer) is charged on the purchase of real estate, which is significantly lower than most European countries.
Read also: Ras Al Khaimah real estate market: advantages and disadvantages.
Conclusion. Buy real estate in Dubai, Sharjah, Fujairah or Abu Dhabi – it means to become one step closer to financial independence and get from this additional bonuses that are unlikely to be so accessible in other countries in Europe or Asia. I, Konstantin Lyutovich, and my 20-88 Real Estate team fully support obtaining a residency visa through real estate investments in the UAE. We will walk this path together and make your wish come true, considering all your preferences and goals. We provide professional support at all stages, from selecting a property to obtaining a resident visa, including legal support of the transaction, preparation of all necessary documents, and interaction with government authorities. Our specialists have extensive experience working with premium real estate in the UAE and are ready to offer optimal solutions for your investment goals. Was the publication interesting and useful? Don’t want to miss important changes? Subscribe to the latest news on the UAE real estate market and receive notifications about new publications on the Lyukos website.
