No residency visa for property buyers-Impact on property market

[shakeel50]

Any idea where prices will head in case the proposed "no automatic visa"for freehold buyers are approved by the Government?

Most of the buyers in Dubai are foreigners who have invested for short term gain or as a second holiday home or to spend good time after retirement.

Does any one has idea how it is going to affect the property market and what kind of strategy should be adopted?

[John]

Do you have any links to news items discussing this withdrawl of automatic visas? It's first i've heard of it, and a bit shocking!

[Roshan]

Originally Posted by shakeel50

Any idea where prices will head in case the proposed "no automatic visa"for freehold buyers are approved by the Government?

Most of the buyers in Dubai are foreigners who have invested for short term gain or as a second holiday home or to spend good time after retirement.

Does any one has idea how it is going to affect the property market and what kind of strategy should be adopted?

I know of an investor who was all set to buy and backed out when this article came on the paper.

Regards

Roshan

[Ali786]

i dont understand what they are doing. One day they tell freehold owners can apply for visa next day they tell no they can't. Can any body have some accurate information.

[sval]

Originally Posted by Ali786

i dont understand what they are doing. One day they tell freehold owners can apply for visa next day they tell no they can't. Can any body have some accurate information.

It is very late in the day for RERA to come up with this "clarification" - when thousands of properties have been sold and advertised on this basis !
It is not that they were unaware of these Advts even by Nakheel, Emaar etc.
This U - Turn will be a big shock to the property market since there were many who were looking at Dubai as a second home option.
What Next, change all Freehold to Leasehold ?

[Ali786]

Which news is correct

Saturday, June 7, 2008
Dubai Property buyers 'have right to residence visa'
original published Gulf News June 06, 2008
Gulfnews: Property buyers 'have right to residence visa'


Dubai: Freehold property buyers are fully entitled to residence visas, a senior government official has confirmed, quashing widespread confusion among homebuyers in the UAE.

Officials at Dubai's Naturalisation and Residency Department (DNRD) have confirmed that anyone who buys a freehold property in the emirate is entitled to residence in Dubai through the master-developer.

Omar Mattar Bin Mizaina, head of employment permits section at DNRD, said,"Anyone who buys a property can get a residence visa in Dubai." There has been widespread concern and confusion in recent weeks among property buyers about this issue, with some believing that master developers had broken the contract as visas had not been issued.

Bin Mizaina said property owners can choose whether they want to be sponsored by their master developer or their employer."You must be a property owner, but it depends on the Ministry of Labour, as some cases are given special approval. But, yes, you can choose," he said.

This is good news for Dubai property owners, as it is seemingly a way of getting around the dreaded ban. Now, if you own a property, even if you resign or are sacked from your job, you will still have your residency visa and won't have to leave the UAE.

However, Mohammad Bin Braik, chief operating officer of Dubai Properties Group, told Gulf News last week:"Resident visas for freehold buyers are subject to conditions which include that you cannot seek employment or run a business and one would assume the buyer has sufficient funds to support himself."

Residence visas are given for one, two, or three years and are then renewed by the DNRD through the original sponsor."As long as you own a property, you will have a residency visa," Bin Mizaina said.

*
*
*
Now the latest one
*
*
*
No automatic residency for property buyers in Dubai
By Bassma Al Jandaly, Staff Reporter
Published: June 23, 2008, 23:33


Dubai: Property buyers should not expect an automatic residence visa upon purchasing property in Dubai, a top official clarified.

"There is no direct link between property ownership and residence visas. Developers should not lure investors to property sector with a promise of residence visa," Marwan Bin Galita, chief executive of Dubai's Real Estate Regulatory Agency (Rera) told Gulf News on Monday.

Bin Galita said a proposal has been submitted to the concerned authorities to issue property investors a visit visa that allows them to travel in and out of the country to follow up their investments in the property market.

"The suggestion, if approved, might be implemented at a federal level, especially that the local laws of most emirates allow foreign ownership of property.


--------------------------------------------------------------------------------


--------------------------------------------------------------------------------


"The visit visa could replace the residence visa, which was issued by some developers in Dubai for those who bought property in their projects."

Bin Galita said the suggested visa is similar to visas issued by foreign countries for property investors as in the US there are more than 250 kinds of visas.

"Those visas will be of many kinds. For example, it could be for two weeks for the person to come and collect the rent or it could be for another specific time to follow up the issue of the investment," he said.

"The visa will have various privileges in line with the size of the investor's investments, and expires once the owned property is sold. Those who earlier acquired residence visas linked to their properties, could have their status amended, should the new legislation take effect," he said.

He added that if the suggestion was approved, then the visa for those who own properties here and want to enter the country will be applied through the residency department and it will be issued in accordance to the volume of the investment also.

"We have to think about the future and about all the possibilities," he added.

[New_Investor]

Guys, i think this is a misunderstanding and a very bad timing and publicity for the Dubai real estate market,

the problem is that investors read the head line only, in-fact the article of 'no automatic visa" added nothing new, the laws are very clear, which is visa will be provided providing that investor doesn't have any other alternative i.e employment visa.

please read the full articles.

i hope this cleared any misunderstanding.

[refles]

I have just read the article in Gulf News. I cant't believe they are going to change the rules after luring thousands of investors into buying property
here thinking they would get a residency visa. The impact is going to be
huge actually deterring a lot of potential buyers from making their move.
I own a place in Dubai Marina and my contract says I am fully entitled to a
freehold residency visa! Remember all the big real estate companies are
government-owned and they advertised their properties on that basis, i.e
the residency visa and now they are saying the opposite! I actually wanted to buy another flat this summer but if Dubai governement are not to be
trusted on this then what next? I know it is their country and they can do what they like but really this is pushing it too far! No way I am going to buy another property in Dubai now. I am really disappointed as my family and I really like it there and this is making it more difficult for us without getting
a job first. What if we want to stay for six months or more in our flat? I suggest all the people who invested in Dubai write a petition to Sheikh Mo
to make sure authorities make good on their promises.

[stylinexpat]

I assume if you don't come from Iran,Iraq,Pakistan,Inida,Bangledash or some other country that you should be fine Those with European, Canadian,US or Australian passports probably won't have any problems. I think they are going through ethnic cleansing at the moment. This unfortunately is quite sad. Look at Jumeirah Beach Residence and notice who they rent to if you are renting from the Sheikh

[Roshan]

Originally Posted by sval

It is very late in the day for RERA to come up with this "clarification" - when thousands of properties have been sold and advertised on this basis !
It is not that they were unaware of these Advts even by Nakheel, Emaar etc.
This U - Turn will be a big shock to the property market since there were many who were looking at Dubai as a second home option.
What Next, change all Freehold to Leasehold ?

If you do not get a residence visa to live in the country, what's the point of having a freehold property.

RERA is in a state of confusion. Give them time, everything should be OK.

They will change the rule in due course. When is the question.

Regards

Roshan