Long property visa to aid recovery
As most of the respondents of Hadef and Partners have sought removal of criminal liability for cheques issued in good faith between private parties, 88 per cent say long-term residence visa options are likely to aid in the recovery of Dubai’s realty market.
“There have been recent initiatives and discussions in administrative and government circles with a view to reviewing this issue, particularly in respect of real estate matters,” the law firm said in its report titled “What is the legal state of the Dubai real estate market?
About 88 per cent of respondents feel that improved finance availability will assist in market recovery while approximately 75 per cent of respondents believe that financial institutions are not adequately supporting the Dubai real estate sector.
According to the report, it also appears that a “freeing up” of the real estate register run by the Dubai Land Department (DLD) so as to allow public searches may assist with the finance market.
Most such registers are publicly searchable in other jurisdictions, and this would assist banks in assessing the mortgage obligations a potential borrower may be liable for, as well as enabling potential purchasers to verify the ownership status of a potential investment. A modest fee could also be charged for this service, which would add to current DLD’s revenue streams.
Offer flexible visa options
Globally, real estate investment is regarded as a medium to long-term play. The general consensus of respondents seems to be that if Dubai wants to attract people who live, work and invest in the long term (rather than just being landlords or using Dubai as a place to stay), then offering only six month renewable visas does not fully correlate with the long term nature of real estate investment, the report said.
Before the federal decree on the residence visa was issued in May 2009, Dubai, Ajman and Ras Al Khaimah developers were offering three-year residence visa on purchase of properties.
“We concur with the view of respondents who suggest that offering more flexible and certain visa options may enhance levels of foreign direct investment and help attract people who wish to establish long term roots in Dubai. However, matters of demographic, social and economic planning, at a national and local level, also require careful consideration,” the report said.