Increase in Demand for Dubai Properties valued at AED 2M
Since the Golden Visa regulations changed, we have seen a trend develop in the Dubai property market. The alteration in the regulation stipulates that a downpayment of AED 1M is no longer required to be eligible for a UAE Golden Visa. Instead, the property in Dubai must be valued at AED 2M. This entails that a financed buyer can apply for a Golden Visa and enjoy all the benefits that come with it.
But how is this change affecting the property market? Will it have an impact in future sales and development and will it stimulate demand for off-plan properties?
Before we address your questions, let’s have a look at a quick summary of the UAE Golden Visa changes in the regulation and what it means for future investors.
The UAE Golden Visa Requirements
This is a benefit offered to Real Estate Investors, Entrepreneurs, Executive Directors, Athletes, Outstandings Students and more. To acquire a Golden Visa through a property investment, you need to be sure that the following criteria is met:
- Own a property or a group of properties valued at AED 2M.
Or…
- Purchase a property valued at AED 2M with a mortgage from specific local banks.
Fulfilling the criteria described above you will be eligible to obtain a Golden Visa for a period of 5 months.
The change in requirements has impacted the market by increasing the demand for properties valued at AED 2M. This means that the pool of buyers interested in villas or apartments valued at this price range will begin to increase. This change has begun to encourage foreign investors, along with existing tenants to buy property in Dubai.
If you want to know more about buying property in Dubai as a foreigner, watch this video!
Read our blog to learn more about the UAE Golden Visa and its requirements.
How did the Golden Visa requirement change impact the property market?
The property market has seen a change in the developers behaviour. Due to buyers increasing their budget from AED 1.5M to AED 2M to afford a two or three bedroom unit, we’re seeing more developers accommodate their projects to fit more townhouses or apartments that match this valuation. This entails that there will be an increase in supply in the market for this type of property.
If you're a seller, you may want to consider selling whilst scarcity is on your side. You can list with us here, we’ll make sure to get it off the market in record time.
The change has also affected buyer behaviour. More buyers are opting to purchase AED 2M properties to enjoy the benefits of a Golden Visa, increasing their budgets to make it past the threshold and get the most out of their investment. This may affect property transactions for units valued less than AED 2M. Luckily for you, there are a few ways you can increase your property value.
How can I increase the value of my property?
We want to help you keep up with the market and increase the net value of your property.
Here are a few tips you can use to increase your property value:
- Do an extended renovation. You can do this by extending the BUA (Built up area) of your property into your plot. Increasing your property size and making way for an additional bedroom.
- Remodel your kitchen and bathroom. You can increase the value of your property by including new appliances to your house, upgrading the fixtures and lighting. Additionally, you can also invest in marble countertops with new cabinets, along with vinyl or wood flooring.
- Tear down the walls. Convert your living room into an open plan living space. Merge your living room and kitchen to make your property more spacious. In addition to that, you can also add a bathroom to the master bedroom, converting it into a suite and adding more value to your property’s worth.
You can read more about how to increase your property’s value here.
Conclusion: Low mortgage rates and the UAE Golden Visa are on your side
Sellers, you can expect a surge in demand. The change in requirements to obtain a Golden Visa, aligned with a drop in interest rates for mortgages, will stimulate demand for properties valued from AED 2M to AED 2.5M. These factors open up the property market to a new segment, encouraging end-users to buy property and beat the rising rental prices; increasing the pool of buyers in Dubai.
The time to sell is now!
