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
Indians emerged as the top buyers of Dubai real estate in 2023, while Pakistanis were placed seventh and also surpassed purchases from last year, according to a report released recently by the emirate-based property consultancy Better Homes.
As Dubai’s population added another 100,000 residents in 2023, the property market also saw record purchases and prices. Prices rose by approximately 18% in 2023, an acceleration of the 11% increase seen in 2022, added the report.
Buyers from India and the United Kingdom accounted for the most transactions, with Russians – who topped the list last year – ranked as the third-largest buyers.
Notably, there was a significant increase in buyers from Pakistan – ranked as 7th largest – Egypt, Lebanon and Turkey, indicating Dubai’s continued role as a global safe haven for geopolitical and economic stability, added the report.
‘Dubai remains popular segment’: Emirates expects strong growth out of Pakistan
The total value of Dubai property sold in 2023 was AED322 billion, up 52% year-on-year. Consumer demand also remained on the uptick throughout 2023, with a 91% increase in leads year-on-year.
Dubai’s GDP grew 3.3% between January and September 2023, according to data released by state news agency WAM on Sunday.
Over those nine months, accommodation and food services grew 11.1%, while transportation and storage services rose by 10.9%, and the information and communications sector grew by 4.4%.
Dubai’s property market also reached new highs in November 2023, crossing a previous record set in September 2014, according to data released by Property Monitor earlier.
In 2023, Dubai’s key communities experienced a widespread increase in the average sales price of villas, ranging from 15% to 30%. A shortage of available inventory led to substantial increases in popular expat communities such as Arabian Ranches (up 25%) and Dubai Hills Estate (up 29%).
Sale of $25mn-plus homes doubles in Dubai, cements its ‘ultra-luxury’ status
Recently, Business Recorder reported that interest of Pakistanis in Dubai’s real estate has pivoted a tad from buying properties for investment purposes to looking to relocate in the city. Quoting an official at renowned developer DAMAC Properties, the report added that most Pakistani buyers are usually in their 40s or above, although there are some in their mid to late 30s who are also interested.
In the report by Better Homes, data also suggested an overall tilt towards end-users being buyers of real estate as opposed to investors in 2023.
Luxury market
Meanwhile, after a record-breaking 2022, Dubai’s luxury real estate market maintained its momentum in 2023, witnessing an impressive 89% growth in transactions over AED15 million.
The appeal of long-term visas, a favourable tax regime, lifestyle, and the relative affordability of luxury homes in Dubai attracted wealthy investors globally with 4,500 millionaires expected to have moved to the UAE in 2023, added Better Homes.
In their cosmopolitan push, Dubai has also enacted social reforms such as decriminalising alcohol and the cohabitation of unmarried couples.
Last week, Khaleej Times reported that the sale of top-tier luxury homes – $25 million (DHS92 million) and above – doubled to 56 the past year in Dubai, due to scarce availability as compared to 2022.
In the Palm Jumeirah, the average price of villas surged by 74%, added Better Homes.
Pakistanis among top 10 buyers in Dubai as real estate sales surge in H1 2022
DUBAI: Sales of homes worth $10 million or more in Dubai hit about $1.6 billion in the third quarter, according to an industry report published on Wednesday, up from $1.13 billion in the same period a year ago.
The total value of sales stood at almost $5 billion between January and September this year, property consultancy Knight Frank said in a statement.
Dubai is racing to attract people and capital to drive long-term growth as part of an economic model focused on property investment, tourism and inflows of foreign capital.
Property is booming – helped by Russian demand amid THE war in Ukraine and laxer residency rules – and analysts this time see more guard rails in place against a repeat of the problems that subdued Dubai after the 2008 global credit crunch.
“Demand for luxury homes in Dubai remains resilient and supply continues to stubbornly lag demand,” said Faisal Durrani, partner and head of research for Middle East and Africa at Knight Frank.
The total number of sales of homes worth more than $10 million in the nine month period to September hit a record high of 277 in Dubai, building on its status as the top market for such deals in the first half, ahead of New York, Hong Kong and London, Knight Frank said.
Activity is dominated by cash buyers, the consultancy said.