High net-worth individuals can obtain a 10-year residency visa by investing ₹21.5 crore in a real estate asset.
Real estate prices in European Union countries have risen, causing an increase in investment thresholds and the termination of Golden Visas offered to wealthy individuals. As a result, Indian investors are turning to the United Arab Emirates (UAE) for such residency opportunities, where high net-worth individuals (HNIs) can obtain a 10-year residency visa by investing 2 million dirhams ( ₹21.5 crore) in a real estate asset.
HNIs are a class of people who work in the financial services industry and have investible surpluses of more than ₹5 crore, but not quite above the threshold. In the financial sector, these investors are categorised as retail because of their net worth.
According to the CBRE Dubai Market Report, total transaction volumes in Dubai’s residential market reached 9,229 in January 2023, marking a growth of 69.2% from a year earlier.
The Golden Visa changes in some EU nations have led to an increased interest from Indian HNIs in the UAE Golden Visa, which offers residency with attractive tax benefits, according to Akash Puri, director, international, India Sotheby’s International Realty.
After the COVID-19 outbreak and travel restrictions, ease of movement became a crucial factor in determining residency status. This led to an increased demand for Golden Visas or residency by investing in real estate in EU nations, especially among the wealthy seeking a route that facilitated mobility. However, this increased real estate prices in the EU countries, prompting them to enhance the threshold for investing or stop the Golden Visa route.
Dubai-based proptech startup Realiste has seen an increase in the number of investors from India in Dubai in the last few months, with many Indians looking to safeguard capital due to the declining value of the rupee. The Dubai housing market is projected to surge as much as 46% in 2023, according to Realiste data, reported The Economic Times.
Indians living in London and the US have also been investing in real estate in EU countries, but with the recent closure of Golden Visas for real estate investors, they will likely turn to buying second homes in the UAE, ET quoted Arjun Sahay, an adviser to India Sotheby’s International Realty, as saying.