UAE extends property investor visa to 3 years

Decision projected to lift the country's real estate sector as well as property stocks

By
  • Parag Deulgaonkar
Published

The decision is expected to boost the property sector and overall economy. (FILE)

The UAE federal government has extended visa for real estate investors from six months to three years.

This decision was taken by the Federal Cabinet on Tuesday in a meeting in Abu Dhabi.

“The government took a raft of measures as part of its efforts to underpin economic growth within its strategic plan 2011-2013, including extension of visa for real estate investors to three years instead of six months,” Wam said.

People familiar with the matter told Emirates 24/7 that the discussion about extension of the property visa was held one and half months back and a number of issues were discussed.

The source added that nothing has been decided on lowering the property valuation clause, but most likely number of visas to be issued will be as per the size of the apartment/property.

 Welcome Move

Analysts said the decision will boost the property sector in the country as will impact the growth of the overall economy.

"A long-term property visa was a long-standing demand of many property investors since the concept of freehold took hold in the United Arab Emirates," said Abu Khaled, a property consultant.

"I know investors from the Indian Subcontinent and from Iran were particularly anxious about a long-term property visa. This move by the Federal Cabinet will re-open the property sector - not just in Dubai - but all across the UAE and we shall soon see demand returning and places such as Ajman and Umm Al Quwain become active again," he added.

"I can see another period of good growth returning to the sector."

Stocks to get a boost

A stock market analyst predicted a rise in property-related stocks. "Unfortunately the market is closed now. Otherwise we would already have seen a a spike in property shares. I will not be surprised if share open higher tomorrow morning and go up through the day. However, there could be some profit-taking towards the end of the trading session," he said.

"Over the long term, this move is bound to lift the stock markets," he added.

Investors happy

"I have invested in three properties in Dubai and one in Ajman. I have enough funds to take care of my living expenses. I like Dubai and I wanted to make this my home. But I needed a residence visa as I am an Indian passport holder. I did start a business to get a residence visa, but it was a hassle. If through my properties I can get a residence visa for thre eyears, then why not? It will be cheaper than the cost of setting up a company and way less hassle," said Rajiv Singh, an investor.

Magda H, another investor said she was thrilled by the news. "This has been a key factor in our purchase of property in the UAE. We do not want to be dependent on a fickle company owner for our stay in the country. Now that such as visa is available, I am sure we will all benefit from it," she added.

She hoped that full details of the facility will be made available soon so investors can plan accordingly.

Industry hails move

“This is something beyond the market’s expectation. The decision is very forward looking and will help boost the market, not just in Dubai, but across the emirate. It will certainly have a very positive impact and help property prices recover over the time.”

Sheikh Maktoum bin Hasher Al Maktoum, President, Al Fajer Properties

"This will help create the right environment for the real estate market and an attraction for the investors, I think it was a wise decision.”

Hicham Al Qassim, Chairman of the Wasl Group

"The real estate market was facing a lot of challenges and this decision would answer some of the questions.The three year visa would serve as an incentive for foreigners to buy properties in UAE and this would go a long in restoring investor’s confidence in UAE leadership.”

Khaled Bin Kalban, Managing Director and CEO of Dubai Investment

“The decision would cause a surge in the growth of the real estate sector in the UAE."

 Hani Al Hamly the Secretary-General of the Dubai Economic Council

"We have always stressed on the need to have such incentive draw customers. The decision is the right step forward boost the sector."

Ahmad Al Matroushi, Managing Director of Emaar Properties Chairman of the Dubai Property Group

“The real estate market was in dire need to clarify the issue of visa for the property owners, and the resolution would now help both individual investors and companies to take their decisions.”

Dr. Ahmed Saif Bel-Hasa, chairman of the UAE Contractors Association 

  The extension of property visa to three years from six month is a positive sign. The sector is now moving towards stability and maturity. Overall, it will help the industry move forward. Besides, the property visa term is more than the normal visa (two years) and this show that the officials have taken into consideration the investment made by people in property sector.

Masood Al Awar, CEO, Tasweek Real Estate Marketing and Development

 
This is great news for real estate investors - a 3-year visa instead of 6 months. This is a great move by the government as this  will surely boost the property sector to a large extent in the UAE. This move will see further demand in real estate sector in Dubai and we are indeed very happy about this decision. It is extremely positive and will give boost to the real estate in Dubai and entire UAE. This will certainly will have a positive move and property prices will stabilise and appreciate.
Kamal Vachani, Director, Al Maya Group; Regional Director, Electronics and Computer Software Export Promotion  Council (ESC)
 
 
The decision is a big relief to all the people who have existing units and for people who are looking to buy properties. It will provide stability to the market and allow people, who were indecisive, to speed up their decision process. But, we need to wait-and-watch till we get a clearer picture on whether the old rules have been relaxed.
 
Abid Junaid, Executive Director, ETA Star
 
"Our real estate survey conducted late last year identified visa length as a key concern for market participants. Extending visas to three years will be very welcome news to existing owners and those looking to enter the market, and we expect it will stimulate demand"
 
Michael Lunjevich, Partner, Hadef & Partners
 
"This is great news and a milestone to reignite the property market. It has come at a good time… just before the summer and we expect it will have positive impact on the sector. I have already got calls from some investors and who have asked me to look for property here after reading the extension of property visa term."
 
Mohanad Alwadiya, Managing Director of Harbor Real Estate.
 
Also Read

Relaxing of property valuation for realty visas next on developers wish list

 


 

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Comments

  • Robert Stewart 10 July 2011 11:23 1 0
    I have been considering selling my properties in Dubai and Ajman but if I can get a three year visa I will now stay.
  • Shabir Ahmed 5 July 2011 15:18 0 0
    Keep it up UAE you did it and it will prove the very right decision in the right direction and we hope by this decision the real estate investors will come back.
  • Diago 5 July 2011 15:01 0 0
    This is great news. Just that this ceiling of Dh1 million should be lowered to boost sales of all units/flats. Or offer, 2 years visa for units having registered value less than Dh1 million. But of course, a person investing even less than one million also needs to check on his house and stay in the country.... clarity on this needs to be made.
  • rafiq 4 July 2011 12:53 0 0
    better to create jobs and hence stable demand for property.
  • Hamayoon Mubtakir 4 July 2011 11:26 0 0
    This is a great and very postive move on the part of the Government. As an investor in two projects in Ajman, this news comes with a lot of hope and good prospects for the future.
  • Salman Saleem 3 July 2011 19:33 0 0
    Can someone please clarify: 1) I have an apartment in Dubai, I bought for Dh636,000 but current value is about Dh450,000 to Dh500,000. Am I eligible for the visa? 2) My Father bought an apartment at JLT, the buying price was Dh1,100,000 but the current pricing is below Dh800,000. Is he eligible? 3) How do we apply and what's the process, as we don't live in Dubai, and dont know the procedure for applying.
  • Kenyamasi 2 July 2011 10:44 0 0
    Fantastic news..WA WA WA
  • Anwar 1 July 2011 05:40 0 0
    Let's wait for the details.
  • Wassim 30 June 2011 17:30 0 0
    Now it is the time to fix the Service Charge issues - Strata Law. The government should also look to control Empower bills because it is almost half the service charge. I believe Dh6-7 per sqft is a reasonable rate including Dewa and Empower bills.
  • John Marshall 30 June 2011 16:01 0 0
    It's a 3-year multiple entry 'visit' visa. The people who are seeing the rule as a residence visa... you should get your facts straight. The current multiple entry visa valid for 6 months is now valid for 3 years.
  • Huzaifa 30 June 2011 14:24 0 0
    If I have more than one property and total sums up to more than Dh1 million, will I then be eligible for applying for residence visa? And is NOC granted if i want to work on my resiedence visa?
  • Ibrahim 30 June 2011 09:12 0 0
    I have few properties some are 850,000/-others are less than that, neither one reaches to 1000,000/- total adds up to a few millions but am I eligible to get residence visa?
  • Anwar 30 June 2011 07:50 0 0
    Great news but it will be even greater if the AED 1 million condition is removed. Yes, there can be an "area based" quantum of visas issued.
  • Asha 29 June 2011 18:02 0 0
    Hope the one million ceiling should be based on the price shown in the puchase document. That is what is the investment by the investor.
  • Mohammad 29 June 2011 17:30 0 0
    Is there any limitation for minimum and maximum investment?
  • Wasim 29 June 2011 16:05 0 0
    Is the Dh1 million the purchase price or the current value of the property?
  • maalam 29 June 2011 12:22 0 0
    As an investor myself this move is a very welcoming gesture from the UAE govt. And this has been waited for so long, now that the new law is here I predict that things will start to get better in the real estate sector.
  • rskakkar 29 June 2011 11:02 0 0
    THIS IS GOOD NEWS FOR PROPERTY INVESTORS IN DUBAI .
  • Kazi 29 June 2011 10:56 0 0
    Is this the "break through" we were looking for???... may be its the begening of good times again in Dubai...
  • Sultana Mahmud 29 June 2011 09:38 0 0
    Great News for investors who have lived in this great Country for years and made it their home away from home, and are willing to contribute towards its progress & prosperity by all means. Long Live UAE!!
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