HNIs turn to UAE as EU tightens golden visas

The rise in real estate prices in European Union countries has led to an increase in the investment threshold or the termination of the golden visas they offer to the wealthy, resulting in Indians once again turning to the United Arab Emirates (UAE) for such residency opportunities, experts said.

Greece has announced that it will double the amount required for a golden visa starting May, while Portugal and Ireland have already ended their programmes. As a result, the UAE has become an attractive option for high-net-worth individuals (HNIs) as it offers a 10-year residency visa for investing 2 million dirhams (₹4.5 crore at current rates) in a real estate asset.

"With the changes to the golden visas offered by some EU nations, we will witness an increased interest from Indian HNIs in the UAE golden visa, which bundles residency with attractive tax benefits," said Akash Puri, director, international, India Sotheby's International Realty.

After the Covid-19 outbreak and subsequent travel restrictions, ease of movement became a crucial factor in determining residency status. This led to the increased demand for golden visas or residency by investing in real estate in EU nations such as Portugal, Greece and Spain, especially among the wealthy seeking a route that facilitated mobility.

"However, this increased the real estate prices in the EU countries, prompting them to enhance the threshold for investing or stop the golden visa route," Puri said.

Dubai-based proptech startup Realiste said it has seen an increase in the number of investors from India in Dubai in the last few months.

"The recent closure of golden visas for real estate investors in European countries significantly contributed to this trend. Unlike them, the UAE, and Dubai in particular, still offer expats the opportunity to obtain residence in exchange for investments, which is a valuable bonus for Indians too," said Alex Galtsev, founder and CEO of Realiste.

The demand is also attributed to the declining value of the rupee, with many Indians looking to safeguard capital. The Dubai housing market will surge as much as 46% in 2023, according to Realiste data.

"Indians living in London and the US have also been investing in real estate in EU countries. With that coming to a halt, we will see Indians living abroad buying second homes in the UAE," said Arjun Sahay, an advisor to India Sotheby's International Realty.

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.