There is a strong and growing demand for the UAE’s Golden Visa among European property investors buying assets in Dubai.
Real estate industry executives privy to the matter said that some are buying property in Dubai only to obtain the 10-year residency.
They said that investors from Switzerland, Germany, France, the UK and other European countries are increasingly looking to benefit from the tax-free income, safety, and security offered by the Emirates, as well as high returns from investments in property markets.
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“Yes. There is a strong interest from European buyers in the market for Golden Visas as they can sponsor family members and domestic workers without needing an employment visa. They can also spend longer in the UAE than when on a tourist visa. As Golden Visa holders, they can open bank accounts and operate as residents here,” said Jess Stephenson, head of sales progression at Allsopp & Allsopp Group.
The 10-year residence visa has been a game changer in attracting the best talent from around the world. In addition, property investors, professionals, entrepreneurs, scientists and outstanding students are also eligible for the Golden Visa.
According to the General Directorate of Residency and Foreigners Affairs (GDRFA) – Dubai, Dubai has seen a 52 per cent increase in the number of Golden Visas issued in the first half of 2023, as compared to the same period in the previous year.
Since the launch of the Golden Visa for property investors, demand for luxury and ultra-luxury properties has jumped substantially in Dubai as thousands of millionaires relocated to the emirate. They enjoy the safety and security for their families, world-class education and a modern lifestyle.
According to Betterhomes, investors from the UK, Russia, Italy, France and Turkey were ranked in the top 10 in 2023 in terms of top property buyers.
Buying property for Golden Visa
Miloš Antić, vice-president of DHG Properties, said that the company has already sold some units to Swiss and Serbian investors. “Everyone knows about Dubai. We have already sold 15 per cent of [our] units, and the majority of the buyers are Europeans. We have sold many units to [investors from] Serbia, Switzerland and Germany.”
“We are seeing an influx of German buyers… many people are moving to Dubai because they don’t want to be taxed,” he said.
“For them, a price point of Dh1,200 or Dh1,400 [per sqft] is a fraction of what they’re paying in the outskirts of their cities. By reducing the minimum down payment requirement for Golden Visa, [the UAE has] opened the doors for more buyers to come to the market. Even though Europeans don’t need a Golden Visa to enter the country, they love it and many are buying properties for it,” Miloš Antić told Khaleej Times in an interview.
Imran Farooq, CEO of Samana Developers, said that there is demand for the Golden Visa from across the world, but the most interest is seen from European property investors.
“The Golden Visa cannot be compared with the visa on arrival or visit visa. It’s gives the investor and his/her family a right to stay for a long time. Generally, whenever people want to live in a country, they want a proper residency rather than to stay on a visit visa and leave every six months. In addition, when someone’s family moves to Dubai, they want to lease a property, buy a car, send kids to school and a host of other related things. All of these are not possible on a visit visa. The Golden Visa is a long-term residency for people who want to maintain a long-term stay here. It also helps in efficient tax planning,” said Farooq.
Citing an example, he said that France intended to introduce a new tax, hence, a large number of French nationals started seeking alternative passports or long-term residencies. He said that this trend can be seen across Europe as well.
“The law and order situation is not as good as in Dubai. Europeans feel more comfortable moving to a much safer place. In addition, ease of doing business and low-tax jurisdiction are some of the key incentives that push Europeans to look for long-term residencies here.”
High returns
Farooq Syed, CEO of Springfield Properties, said that the emirate’s real estate market is increasingly capturing the interest of European investors, who are driven by the allure of high rental returns and capital appreciation.
“Factors such as the economy’s stability, robust real estate growth, advanced infrastructure, and strong safety measures contribute to this attraction. With the European economy facing challenges due to the Ukrainian crisis, many investors are turning to Dubai as the safe option for more profitable investment prospects. Investors from countries like Germany, Switzerland, France, and the UK are prominent players in Dubai’s property market,” added Syed.
Compared to other European cities like London, Berlin, and Monaco, Syed added, Dubai offers better value for property investment.
“Acquiring a Golden Visa offers European investors many benefits when exploring opportunities in the UAE. It allows investors to secure property ownership in Dubai, tapping into the city’s thriving real estate market, which has demonstrated remarkable growth,” said the CEO of Springfield Properties.
Not just investors, but property developers from Europe are also flocking to the emirate to cash in on high returns. The Switzerland-based DHG Properties recently launched its first project in Jumeirah Village Circle (JVC), with strong interest from European investors.