The United Arab Emirates (UAE) has unveiled a groundbreaking update to its long-term residency program, introducing a new Golden Visa scheme that liberates foreign nationals from the need to invest in real estate to secure residency. For a one-time fee of AED 1,00,000 (approximately Rs 23.3 lakh), individuals can now gain lifetime residency, marking a significant shift from the previous requirement of a AED 2 million investment in local property for a 10-year renewable visa.
A Strategic Move: Welcoming Global Talent
This strategic policy change is poised to attract a more diverse pool of global talent and investors, including significant interest from nations like India and Bangladesh. The initial phase of the rollout aims to accept over 5,000 applications within three months, with the UAE government yet to provide an official statement. However, industry experts are already hailing the initiative as a transformative shift for residency planning and investment strategy in the region.
“The new framework is more inclusive and aligned with the UAE’s long-term vision,” said Akash Puri, Director International, India Sotheby’s International Realty, calling the shift a two-pronged turning point for Indian investors.
Impact on Real Estate Investment
Historically, real estate investment was one of the few avenues for securing long-term residency in the UAE, prompting many Indian investors to channel funds into the property market primarily for capital preservation and immigration benefits. However, with the Golden Visa now accessible through more inclusive means, the pressure to invest solely for residency is expected to diminish. This change is likely to impact mid-market and entry-level segments the most, potentially cooling speculative buying and encouraging more strategic investment behavior.
“With the visa now accessible through broader channels, the urgency to invest solely for residency purposes is likely to ease — especially in the mid-market and entry-level segments,” said Puri. “This could cool speculative buying and encourage more grounded investment behaviour.”
Shifting Focus: From Residency to Value
Investors who continue to engage with the UAE real estate market will likely sharpen their focus on fundamentals such as location, developer reputation, and long-term rental yields. Luxury and trophy properties will remain attractive to ultra-high-net-worth individuals, who are generally unaffected by the visa-linked changes. Indian investors, in particular, are encouraged to shift their focus from residency-led transactions to value-driven strategies.
“For Indian investors, this is a cue to recalibrate: from residency-led transactions to value-led strategies,” Puri noted. “Over time, this evolution could establish a more stable, resilient real estate market — one that rewards strategic, long-term participation over short-term speculation.”
Summary of Golden Visa Changes
| Old Requirement | New Requirement |
|---|---|
| AED 2 million real estate investment | AED 1,00,000 fee |
| 10-year renewable visa | Lifetime residency |
| Targeted at real estate investors | Open to broader demographics |
Q1: What is the new UAE Golden Visa?
The new UAE Golden Visa is a nomination-based program offering lifetime residency for a one-time fee of AED 1,00,000, without the need for real estate investment.
Q2: Who can apply for this new Visa?
Initially, the program targets foreign nationals, including those from India and Bangladesh, with plans to expand further.
Q3: How does this affect real estate investment?
With residency no longer tied to real estate investment, the pressure to buy property for visa purposes is reduced, likely impacting speculative buying in mid-market segments.
Q4: What should investors focus on now?
Investors should concentrate on fundamentals like location, developer reputation, and long-term rental yields rather than residency-driven purchases.
Q5: How will this change impact the real estate market?
This shift is expected to create a more stable and resilient market, encouraging long-term strategic investments over short-term speculation.
In conclusion, the UAE’s new Golden Visa program represents a significant shift in the region’s residency and investment landscape, offering a more flexible and inclusive approach to attracting global talent and capital. By decoupling residency from property investment, the UAE sets the stage for a diverse and strategic real estate market poised for sustainable growth.