Wealthy ‘retirees’ flock to Dubai after $272,000 rule change
Dubai is set to become a more attractive destination for wealthy retirees, thanks to its exceptional offerings, including the latest healthcare facilities.
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The emirate is experiencing a surge in interest from affluent retirees globally, triggered by a significant update to the UAE Golden Visa program. This update removes the prior minimum upfront investment requirement for property purchases, sparking an increase in residential real estate inquiries among property technology companies in Dubai.
These outstanding offerings, along with world-class healthcare facilities, are key factors in attracting financially secure retirees looking for a new home.
Experts in the field report a rise in interest following the adjustment to the AED2 million property investment threshold for the 10-year Golden Visa. The Golden Visa scheme is recognized as a major attraction for global talent and investment in the UAE, with expectations for demand to surge further because of the recent policy change.
Experts also highlights the Golden Visa as a rewarding option for expatriate retirees, especially with the recent easing of the investment minimum. This has made Dubai an increasingly popular choice for retirees worldwide.
Senior executives in Dubai’s property and real estate consultancy sectors also note a growing enthusiasm among retirees to relocate to Dubai, following the UAE Government’s decision to eliminate the AED1 million minimum upfront payment for property purchases required for the Golden Visa, while keeping the property value standard at AED2 million for the visa.
Easier Access to Golden Visas Sparks Interest
The policy modification is expected to lower the entry barrier for obtaining Golden Visas, leading to an uptick in property transactions across Dubai and other real estate hotspots in the UAE like Abu Dhabi and Ras Al Khaimah.
Industry leaders view this change as transformative, widening the scope for Golden Visa eligibility through home ownership to a broader audience. The revision allows prospective buyers to secure a long-term residency visa with an initial down payment of just 20% for properties valued at a minimum of AED2 million, easing the financial load and streamlining the path to obtaining a Golden Visa.
Furthermore, the new policy facilitates the acquisition of a long-term visa with flexible payment plans for off-plan properties.
By facilitating Golden Visa acquisition through property ownership, the UAE is positioning itself as a magnet for international talent and investors over the long haul.
Diverse Housing Options Bolster Dubai’s Appeal
The decision to significantly lower the upfront payment required for property-based long-term residency visas, alongside the broad spectrum of housing options, cements Dubai’s status as a premier destination for affluent retirees, especially from the West. The average baby boomer, with a net worth of $1.2 million and either nearing or in retirement, represents a financially robust demographic with considerable economic influence.
Dubai’s safe environment, high-quality lifestyle, warm climate, and superior healthcare services meet all the criteria sought by these retirees. According to a recent Mercer report, the UAE stands to gain from encouraging more expatriates to consider retirement within its borders. Dubai’s wide range of residential offerings, from cozy apartments to luxurious villas, provides retirees ample choice, further enhancing its allure as a cosmopolitan city where individuals can efficiently manage their savings and enjoy the stability of a long-term visa.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
Villa prices saw particularly strong growth, with capital values increasing by 33.4 percent year-on-year
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Dubai’s real estate market showed strong performance in the second quarter of 2024, with notable increases across the residential, office, and retail sectors, according to a new ValuStrat real estate report for Q2 2024.
Villa prices experienced particularly strong growth, with capital values rising by 33.4 percent year-on-year.
Haider Tuaima, Director and Head of Real Estate Research at ValuStrat said: “The Dubai real estate market has shown impressive growth and resilience in recent months. The ValuStrat Price Index for Residential Capital Values increased by 6.4 percent quarterly and 28.2 percent annually, reaching 178.2 points.
“Despite severe flooding caused by record rainfalls in April, the quick and effective response from developers and authorities helped to control the damage, ensuring that market activity and property valuations remained robust in the subsequent months.”
The office sector also performed well, with the VPI for office capital values surging by 31.7 percent annually and 9.4 percent quarterly, reaching 212.5 points—the highest quarterly increase in a decade.
In the retail sector, Emaar Properties reported 98 percent occupancy in their prime mall assets, while overall mall occupancy stood at 96 percent during the first quarter of 2024. The hospitality sector also saw growth, with total international guests reaching 8.12 million as of May 2024, a 9.9 percent increase compared to the same period last year. Hotel occupancy reached 81 percent, rising by 1.4 percent year-on-year.
Despite these positive indicators, Tuaima added, “The decline in transaction volumes calls for a closer examination of market dynamics as stakeholders navigate this evolving landscape.”
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
