During the pandemic, Dubai changed the game and decided to open its strategies, which to this day have contributed to the success of real estate investments. During those times, Dubai granted residency through employment, which were replaced by the already known long-term “golden visas” and more flexible policies for companies that decide to settle in this place.
In this way, the authorities of the United Arab Emirates managed to change the perception of the city from being considered a transient site, a mandatory stop for exiles, to becoming the paradise where everyone wants to live. By 2023, Dubai managed to maintain 411,802 active licenses, which implies a 75% increase compared to 2021, during the height of the pandemic.
The impact of the golden visas on real estate investments in Dubai.
In this context, the Dubai International Financial Centre (DIFC) registered a considerable increase at the beginning of 2024 in the number of registered entities, which is 26% higher than the previous year. This growth has a direct impact on the real estate sectors because occupancy is higher than in cities like London and New York. In this district, office spaces are scarce and rental values continue to rise.
This is an indicator that investors are choosing Dubai as their operational hub, with an increase in companies due to the arrival of Russians fleeing the restrictions from the war in Ukraine, and many bankers from Asia have moved here, encouraged by the freedoms that Dubai offers. The population has increased in the city, and the government expects the population to reach 8.5 million by 2040, compared to the current 3.5 million.
How to access a golden visa in Dubai
The Dubai golden visa, also known as the United Arab Emirates golden visa, is a long-term residency permit that allows individuals to live, work, study, and sponsor family members in this territory. This type of regulation was previously exclusive to investors with capital ranging from 5 to 10 million dirhams, although in 2022 it became necessary to have just a minimum exceptional investment of only 750,000 dirhams.
This visa has a duration of 5 to 10 years with the option to be renewed and is an excellent opportunity for investors, entrepreneurs, scientists, highly skilled professionals, and individuals with exceptional talents. To qualify, it is also necessary to meet a series of requirements, such as having a technical or future economic project valued at least at 500,000 dirhams, earning more than 30,000 dirhams per month, and owning a property off-plan valued at least at 2 million.
Dubai and the role of golden visas in future industries.
The real estate market in Dubai has been strongly boosted by these visa policies, and 44% of end users account for property purchases in the city. But it is not only this sector that contributes to the country’s growth; golden visas also offer opportunities for the development of knowledge industries. This is a tool to attract suitable employees in these types of sectors, although permanent residency remains complicated.
To retain this labor capital in Dubai, it is also important that the permanence policies are adequate. If people stop working in the city, it is crucial that there are appropriate retirement and health access plans to ensure retention. For now, this site stands out as one of the most attractive, although its main competitor, Riyadh (in Saudi Arabia), is one of the enclaves that exerts the most force to end its supremacy.
