Villa in UAE for a residency permit
The country is recognised as one of the most attractive destinations for real estate investment. Buyers often choose villas in the UAE for investment to secure resident status. A residency visa grants the owner the right to live in the country indefinitely, without restrictions on the number of days spent there and offers several additional benefits, which we will discuss below.
The process of purchasing property in the UAE is straightforward, as the legislation in this area is well-regulated, ensuring transparent transactions. However, obtaining residency requires meeting certain conditions. Firstly, house prices in the UAE must meet or exceed the government-mandated threshold. For a 5-year visa, you must own one or more properties worth over AED 2 million (USD 545,000). A two-year visa can also be obtained in Dubai with a minimum property value of AED 750,000 (USD 205,000). Another important requirement is that the property must be located in designated freehold zones, where foreigners are allowed to fully own real estate.
Residence permit in UAE by buying a house
Obtaining a residence permit in the UAE through property investment is a way to legalise your stay in the country. A long-term visa grants homeowners and their families the right to reside in the UAE. Both houses and apartments in the UAE qualify for this visa.
To become a resident, a few key conditions must be met:
- Property purchase: The acquired property must meet or exceed the minimum price threshold. If purchased on a payment plan, the initial deposit must comply with the programme’s requirements;
- Application submission: After completing the purchase, the investor applies to the authorities to process their residency status. This requires providing proof of property ownership, a passport and photographs;
- Medical examination: All applicants must undergo a medical exam to ensure they are free from contagious diseases. This is a mandatory requirement for anyone seeking residency.
- Receiving the Residency Card: After completing all the steps and verifying the documents, the applicant receives a residency card, granting them the right to move to the area.
This residency card provides several key benefits, including the freedom to live in the country, access to quality healthcare and education and the opportunity to conduct business without personal or corporate income tax. Additionally, investors can earn rental income from their properties.
The residency is renewable as long as property ownership is maintained, ensuring long-term stability for those planning to reside in the country.
Investment house in UAE
The country offers high salaries and hosts a range of international and local businesses. Its thriving tourism sector, combined with the opportunity to gain residency through purchasing real estate, which can generate passive income, further adds to its appeal.
The strong tourism industry ensures stable and predictable rental income. In the first quarter of last year, Dubai welcomed 8.55 million visitors, marking a 20% year-on-year increase. Ras Al Khaimah experienced a 148% surge, attracting 600,000 tourists during the same period.
In addition to short-term rentals, long-term rental options are also lucrative, as the country draws skilled professionals and freelancers. Approximately 140,000 people move to the country each year, with many families opting for homes.
Rental yields are impressive. In the first half of 2024, rental prices for budget homes in Dubai increased by 12%, while renting a small villa became 15% more expensive and luxury villa rental prices surged by 27%.
Investors can expect average annual returns of 6-8%, with some areas offering returns as high as 10%. The highest returns often come from investing in villas for sale in the UAE during the early stages of construction, as new developments are frequently launched in the country.