Dubai is anticipated to see an influx of wealthy ‘retirees’ from around the world, with city-based proptech firms reporting a surge in queries for residential real estate investments in the aftermath of the waiver on minimum upfront investments for property purchases required under the 10-year Golden Visa rule.
The city’s exceptional services and amenities, including addition of a range of world-class healthcare facilities, are also acting as catalysts for potential relocation for cash-rich retirees.
“As a platform dealing in sourcing leads directly for developers like Damac, Sobha, Arada and others, we are already seeing increased queries due to the lower entry point [under the AED2 million property investment rule],” Samer Chehab, founder, PropertyGuru.ae, a Dubai-based proptech operating exclusively in the off-market segment, told Arabian Business.
“The Golden Visa has been a talent and investment magnet for the UAE, and we expect demand to grow even more in the coming months due to the rule change [related to minimum upfront payment],” he said.
Alois Kugendran, General Manager – Real Estate at Huspy, another Dubai-based real estate and mortgage services provider, said with the Golden Visa offering a viable option for expat retirees, coupled with the relaxation on the minimum requirement for an investment now, Dubai is rising on their radar as an attractive destination.
“Dubai is fast becoming a compelling choice for retirees from around the globe,” he said.
Senior executives at some of the other city-based proptechs and real estate consultancies also confirmed the rising interest levels of retirees for relocation to Dubai following the UAE Government’s move to do away with the AED1 million minimum upfront payment required for property purchases to qualify for the 10-year Golden Visa.
The rule change, announced in January this year, however, still stipulates the AED2 million property value requirement for the long-term residency visa.
Rule change to lead to lower entry barrier
Industry players said with the lowering of the entry barriers for seeking Golden Visas, the property purchase transactions in Dubai – as also in other rising real estate hotspots such as Abu Dhabi and Ras Al Khaimah – are expected to see a spike in the coming months and years.
“Definitely, this will open the scope for more [initial] smaller ticket size purchases, which means higher number of transactions,” Kugendran said.
Chehab said the new rule is a game changer “as it now opens up obtaining the Golden Visa through home ownership to many more prospective buyers”.
The PropertyGuru.ae top executive pointed out that the elimination of the minimum payment means people buying a ready property can now secure long-term residency by paying as little as 20 percent of the property value upfront, as long as the total value is at least AED2 million.
“This reduces the strain on finances for buyers and gives them a faster path to a Golden Visa.”
He also said the new rules also open up the potential to secure a long-term visa using a flexible payment plan on an off-plan property.
Sector experts said by making it easier to obtain a Golden Visa through home ownership in the UAE, the authorities are ensuring the country will attract global talent and investors for the long term.
Wide range of property options in Dubai
Industry insiders said the move to drastically reduce the upfront payment requirement for property investment-based long-term residency visas and the availability of a wide range of property options will propel Dubai to the top of the ‘most favoured’ destinations for the wealthy baby bombers, especially in the West.
The average baby boomer is estimated to have a net worth of $1.2 million, with many of them approaching their retirement or have already retired.
“These are people who are financially stable, and can make a strong impact on local economies through their spending power.
“They typically seek locations that are safe, secure, have great weather, quality of life, and solid healthcare services. The UAE ticks pretty much every one of those boxes,” Kugendran said.
The UAE, with its significantly high proportion of high-net-worth international expatriates, could benefit from more expatriates staying for retirement, according to a recent report by Mercer.
Industry insiders said Dubai provides a great opportunity for retirees to live in a global city, with the added benefit of becoming tax efficient with their savings, and having the comfort of a long-term visa.
The emirate also provides a variety of housing options – from smaller apartments to luxury villas – which gives retirees a wide range of options, they said.
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