Since being founded in 2020, real estate investment firm Stake has worked with Dubai International Financial Centre (DIFC) to help 22 people get golden visas by allowing them to invest in multiple properties on its platform rather than just one.
Given the interest of Pakistanis in both golden visas and Dubai real estate, it is no surprise the last three visa recipients have been from the South Asian country.
The minimum investment required to qualify for the coveted golden visa via the property route is AED 2 million. However, Stake allows you to use this money to buy parts of several properties – which will yield you a variety of rental incomes and diversify risk as well – and ultimately qualify for the visa.
“DIFC is helping us get these investors a golden visa,” explained Stake senior relationship manager Muhammad Burhan in an interview with Business Recorder.
According to him, “it’s a very simple, straightforward process. You invest AED 2 million on the platform. Once that is done, we take care of the entire process.”
“There’s a small nominal fee that one has to pay for the golden visa, which is taken by the UAE government. But then we take care of the rest. You let us know when it’s comfortable for you to come to the country. We go through a process and within about two weeks time, you have your golden visa in your hand.”
However, he explains some of the intricacies of the process: Stake is a regulated platform and all its investors are by default classified as retail investors, which means they are only allowed to invest $50,000 a year.
If you want to invest more than this, you have to be classified as a professional investor, and then there is no limit to how much you can invest.
For this “you need to prove that your net worth is more than a million dollars. This could be done either via property assets which are outside of your primary residence or by showing a portfolio of assets anywhere around the world,” said Burhan.
Stake believes it stands out because it allows users to put their money in different properties.
“The whole idea is to diversify your investment. Instead of investing, let’s say, a million dirhams into one property, you can invest it over say, ten different ones.”
He says this has one obvious advantage: “It’s possible if you pick one property it may not able to generate a rental income for any reason, but it’s impossible that all ten properties will be vacant.”
Stake says it will also manage the property for you. “We are managing everything end to end. We are finding the tenant, we are buying the property. We will sell it as well when you decide you want to do so,” says Burhan.
The reason for so much interest in the golden visa is that it opens up opportunities for you in Dubai, Burhan added.
“You can sponsor your spouse and kids as well as your parents. It’s renewable after every ten years. Unlike a regular investor visa, you don’t need to enter the country every six months to keep it valid,” he said, listing the perks.
It also helps you open up a bank account, which Burhan says “is one of the biggest plus for any investor or business person. You can get mortgages as well. So it opens a lot of doors.”
Democratising access to real estate
Stake’s service is not just for those who want golden visas or want to invest huge amounts. Burhan says one can start from as little as AED 500. All that’s needed is a debit card.
Out of a total 400,000, Stake has some 23,000 Pakistani users, 7,000 of which are based in the country itself. The average Pakistani tests out the service by putting in AED10,000.
“But many have invested almost $50,000 with us as well,” he adds, putting this down to the fact that Pakistanis understand and are comfortable with the local laws and the market.
Most users are aged around 30 to 40, many of them freelancers.
“Pakistanis are moving towards freelancing and they’re making decent money. They are looking for a safe place to invest this money, which they can use later on as well.” says Burhan.
A cherry on top is that Stake is Shariah-compliant: “There is no interest, there is no debt involved anywhere.”
With a minimum AED 500 limit, Stake believes it is democratising access to real estate by letting people invest in areas like Downtown, Marina and the Palm.
“These are places where not all people may be able to afford properties.”
“In today’s market, if you go out and if you want to buy something, you have to come up with a huge down payment.
On top of this: “we’re giving you an opportunity to invest into something which is ready (not off-plan), something which is already rented out in most of the cases, meaning it will make you money from day one”.
The company also prides itself on being transparent: “We are providing you with all the information before you’re making any sort of investment. You know about all the fees you will incur (land department fees, trustee fees etc).
“You also know exactly where the property is, how much it is being rented out for and how much you’re going to make per month as your rental income.”
Stake’s services are relevant given that Pakistanis remain among top 10 nationalities that buy property in Dubai – they came in seventh place, according to a January report by property consultancy Better Homes.
At the same time, many are attracted to living there. Recently, Business Recorder reported that interest of Pakistanis in Dubai’s real estate has pivoted slightly from buying properties for investment purposes to looking to relocate to the city.
Copyright Business Recorder, 2024
The UAE has cancelled the Dh1 million ($272,294) minimum down payment required for people to qualify for a golden visa through real estate investment, as it seeks to encourage more residents and investors to establish deeper roots in the country, according to sources.
Previously, to qualify for the 10-year renewable residency programme, which was introduced in 2019, investors were required to acquire property valued at Dh2 million or above.
But for properties bought on mortgage or instalment plans, homebuyers had to make a minimum down payment of Dh1 million, or 50 per cent of the property’s value, to the bank or developer to be eligible for the golden visa.
The recent change eliminates the need for a minimum down payment altogether, according to Maroun Abou Harb, an associate at law firm BSA Ahmad bin Hezeem & Associates.
Now, investors can qualify for the golden visa if the property’s value is Dh2 million or more, regardless of whether it’s off-plan, completed, mortgaged or not mortgaged, he said.
However, the change has not yet been reflected on the Dubai Land Department’s Cube website, a customer service initiative to support investor and golden visa services for property buyers.
Dubai’s General Directorate of Residency and Foreigners Affairs website has not yet been updated to reflect the change.
The eligibility criteria for obtaining the golden residency for real estate investors stays unchanged, with the property value requirement set at a minimum of Dh2 million, the DLD told The National.
BSA Ahmad bin Hezeem & Associates was informed about the change on January 22, Mr Abou Harb said.
“No circular has been sent out yet, although when we visited the DLD at The Cube, where they handle the golden visa applications, that’s where we were made aware of this change,” said Jess Stephenson, head of sales progression at Dubai property broker Allsopp & Allsopp.
In recent years, the UAE, the Arab world’s second-largest economy, has undertaken several economic, legal and social reforms to boost foreign direct investment and attract skilled workers.
The Emirates introduced the golden visa programme in 2019. The visas are valid for 10 years and aim to encourage exceptional workers and foreign investors to establish deeper ties to the country.
In 2022, amendments were introduced to the golden residency initiative to simplify the eligibility criteria and expand the categories of beneficiaries.
The 10-year visa is granted to investors, entrepreneurs, skilled professionals who earn a monthly salary of more than Dh30,000 ($8,167), exceptional talents, scientists and professionals, outstanding students and graduates, property investors, humanitarian pioneers and frontline heroes.
“This policy change would benefit many buyers and end users as this will open up the golden visa option to pretty much everybody who’s bought a property, because most properties are valued at more than Dh2 million,” Ms Stephenson said.
“That way, all mortgage buyers would be able to apply for the golden visa, and then they can also sponsor their family and domestic staff. This means there would be more buyer confidence in the city, too.”
Another property agent said he would test the policy change first hand when one of his customers visits the DLD this week to register a transaction for a property worth more than Dh2 million.
Meanwhile, the “excellent government initiative” would help boost the property market, said Matthew Gregory, branch director at real estate agency Betterhomes.
“This enables us to have positive conversations with potential clients, especially from overseas, and help them get on the property ladder and obtain a visa even quicker with a minimal investment,” he said.
“You only have to buy a property worth Dh2 million, but you don’t have to hold equity of the same value.
“If you buy an off-plan unit, you just need to pay the down payment, which for some is only Dh50,000, and be eligible for a golden visa.”
Before this, investors needed to have equity in the property over a certain value to be eligible for a golden visa, he said.
Who is eligible for a UAE Golden Visa under new rules?
“This meant you couldn’t do it for off-plan properties because you didn’t have equity until you fulfilled a large percentage of the payment plan.”
Ben Crompton, managing partner of Abu Dhabi real estate agency Crompton Partners Estate Agents, said his company had not been informed of any changes to the golden visa application criteria.
“If the value is scrapped, it will mean a lot more golden visas will be issued. It might stimulate domestic purchases, but is much more likely to attract foreign investors,” he said.
The recent rule change regarding the golden visa through real estate investment is applicable not only to specific emirates but across the UAE, according to Mr Abou Harb.
“This change is expected to stimulate increased investment in the real estate sector. By eliminating the financial barrier associated with the down payment, more investors may be enticed to participate in property acquisitions, fostering a surge in real estate transactions,” he said.
“This inflow of investment could lead to heightened construction activities, job creation and overall economic growth associated with the real estate industry.”
The broader eligibility criteria for the golden visa may attract a more diverse pool of investors, he added.
With the focus shifting from a specific down payment requirement to the property’s overall value, individuals with varying financial capacities may find the golden visa programme more accessible.
“The rule change may serve as a strategic response to market dynamics, aiming to bolster Dubai’s real estate sector amid predictions of a potential price drop,” Mr Abou Harb said.
“By facilitating easier access to the golden visa, the government could be proactively counteracting market downturns, ensuring sustained growth and resilience. This move may not only attract new investors but also instil confidence in existing stakeholders, fostering a positive sentiment that could contribute to the stability and long-term vitality of the UAE’s real estate market.”
Updated: January 24, 2024, 3:38 PM
Huge news for property owners…
Dubai has cancelled the Dhs1 million down-payment previously required for people to qualify for the 10-year Golden Visa (through property investment), according to The National.
For buyers to be eligible for the Golden Visa, the property value must now be over Dhs2 million. Previously, property investors would have to put down a minimum payment of Dhs1 million.
This is huge news for buyers and means that the majority of property investors in Dubai will now qualify for that special 10-year golden residency.
“You only have to buy a property worth Dh2 million, but you don’t have to hold equity of the same value.” Matthew Gregory, branch director at real estate agency Betterhomes told The National.
“If you buy an off-plan unit, you just need to pay the down payment, which for some is only Dh50,000, and be eligible for a golden visa.”
The UAE first introduced the Golden Visa in 2019, granting exceptional talents the ability to live and work in the country under their own sponsorship through a 10-year renewable visa.
In the years that have followed, the categories for eligibility of the UAE Golden Visa has expanded, allowing more people to make permanent roots in the UAE.
Notable recipients of the golden visa include football stars Cristiano Ronaldo, Paul Pogba, Luís Figo and Roberto Carlos; tennis champion Novak Djokovic; and Danú Theatre Founder and director Padraig Downey.
SEE ALSO: Everything you need to know about getting the UAE Golden Visa
For those that don’t qualify for the Golden Visa through real estate investment, here are the two other categories:
C level (management) Golden Visa
- Monthly salary over Dhs30,000
- Fully attested and translated degree
- 6 months’ bank statements
- NOC from current employer
- Salary certificate
- Identification documents
Special talents Golden Visa
- Fully attested and translated degree
- Proof of works
- CV
- Recommendation letter
- Identification documents
Images: Unsplash
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