Property investors financing their purchases through a mortgage can now qualify for the UAE’s Golden Visa under the AED 2 million real estate threshold, according to a clarification that resolves what had previously been an uncertain area of the residency programme’s eligibility criteria. The update confirms that applicants do not need to hold a property outright to meet the investment requirement, provided the value of the asset meets the AED 2 million minimum.
The clarification was reported by UAE Golden Visa: Mortgaged property can qualify under AED 2m rule – Arabian Business, which noted that the update addresses long-standing confusion among applicants and property professionals over whether leveraged purchases could be counted toward the residency scheme’s investment threshold. Until now, many prospective applicants had assumed that only fully owned, mortgage-free properties would satisfy the requirement, a belief that appears to have discouraged some financed buyers from pursuing the visa route altogether.
Wider implications for the property market
The change is expected to have particular resonance among Gulf nationals and regional investors, who frequently rely on mortgage financing rather than outright cash purchases when acquiring property in the UAE. For this segment of buyers, uncertainty over Golden Visa eligibility may have acted as a deterrent, even when the underlying property value comfortably exceeded the AED 2 million threshold. By formally confirming that mortgaged assets count toward the requirement, authorities have removed a barrier that could have limited uptake of the residency scheme among a significant pool of GCC-based investors.
The move is also likely to be felt more broadly across the UAE’s real estate sector, where the Golden Visa has become an increasingly important draw for buyers seeking long-term residency alongside property ownership. Developers and agents have in recent years positioned high-value units specifically to meet the AED 2 million threshold, marketing them to expatriates and international investors eager to secure the 10-year permit. A clearer stance on financed purchases could widen the base of eligible buyers, particularly among those who prefer to preserve liquidity rather than deploy the full purchase price upfront.
The clarification is consistent with the UAE’s broader approach to residency policy since the Golden Visa programme was introduced in 2020. The initiative was designed to attract foreign talent, entrepreneurs and investors by offering renewable residency terms of five, ten and twenty years, reducing reliance on employer-sponsored visas and offering greater long-term certainty to residents and their families. Property investment has remained one of the most accessible routes into the scheme, alongside criteria tied to business ownership, specialised skills and significant public contributions.
For the property market, the practical effect of the ruling may be most visible in transaction patterns over the coming months, as buyers who had previously hesitated over financed purchases reassess their options. Real estate advisors and mortgage providers are likely to face increased enquiries from clients seeking to confirm how the clarified rule applies to specific transactions, particularly where properties are jointly financed or held under complex ownership structures. Authorities have not indicated any accompanying changes to the AED 2 million threshold itself, suggesting the adjustment is intended purely to clarify existing rules rather than expand or alter the scheme’s core investment requirements.
