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patience
New Member
Me too, up the creek with out a paddle!!
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TommyC
New Member
Analysts raise doubts on impact of UAE visa plan - Real Estate - ArabianBusiness.com
Analysts raise doubts on impact of UAE visa plan
Analysts said on Sunday that the UAE's plan to grant expat homeowners multiple-entry visit visas enabling them to stay six months at a time if they own properties worth at least 1 million dirhams ($272,300) was unlikely to stimulate the market to any degree.
Property buyers had been waiting for legislation for years to clarify their residency rights in the second-largest Arab economy after many of the country's seven emirates allowed foreign investment in property in recent years.
But analysts said the government decree, issued on Saturday, needed more details on which properties would be eligible amid a real estate downturn that dragged Dubai property prices down 41 percent in the first quarter.
Saud Masud, analyst at UBS, told Arabian Business: "This visa extension has marginal implications because it is a temporary extension of stay and does not allow expats to work.
"Essentially a qualified expat property owner is granted an extra 5 months to stay in Dubai should he or she lose their job. How many expats own properties worth AED1 million or more and have a monthly income of AED10,000? A minority of the total employed workforce in my opinion.
"At end of the day, sustainable population stickiness or growth depends on job creation for majority of the employed pool."
And EFG-Hermes added in a research note: "Greater clarity regarding visa and ownership rights of property owners would help to increase transparency and hence confidence in the market, perhaps providing a positive trigger for demand."
According to a decree issued by UAE Minister of Interior Sheikh Saif bin Zayed al-Nahayan, owners of built-up properties can stay for six months from the date of entry into the country.
After six months, owners would have to leave the country and would be granted re-entry only if they meet certain conditions, including that their property be wholly owned, built, worth least 1 million dirhams and fit for accommodation by a family.
The owner should also have a fixed income of no less than 10,000 dirhams a month, or the equivalent in a foreign currency. The visit visa does not give the owner the right to work in the UAE, the decree said.
"More clarity is needed," said Sana Kapadia, vice president, equity research at EFG-Hermes in Dubai. "It depends whether it means 1 million dirhams at the time of purchase or if is the current selling price."
Real estate prices in Dubai, for instance, have tumbled 41 percent in the first three months of 2009, according to property consultants Colliers.
Home prices rallied during a six-year boom spurred by Dubai's decision in 2002 to allow foreigners to invest in some properties on a freehold basis.
Analysts raise doubts on impact of UAE visa plan
Analysts said on Sunday that the UAE's plan to grant expat homeowners multiple-entry visit visas enabling them to stay six months at a time if they own properties worth at least 1 million dirhams ($272,300) was unlikely to stimulate the market to any degree.
Property buyers had been waiting for legislation for years to clarify their residency rights in the second-largest Arab economy after many of the country's seven emirates allowed foreign investment in property in recent years.
But analysts said the government decree, issued on Saturday, needed more details on which properties would be eligible amid a real estate downturn that dragged Dubai property prices down 41 percent in the first quarter.
Saud Masud, analyst at UBS, told Arabian Business: "This visa extension has marginal implications because it is a temporary extension of stay and does not allow expats to work.
"Essentially a qualified expat property owner is granted an extra 5 months to stay in Dubai should he or she lose their job. How many expats own properties worth AED1 million or more and have a monthly income of AED10,000? A minority of the total employed workforce in my opinion.
"At end of the day, sustainable population stickiness or growth depends on job creation for majority of the employed pool."
And EFG-Hermes added in a research note: "Greater clarity regarding visa and ownership rights of property owners would help to increase transparency and hence confidence in the market, perhaps providing a positive trigger for demand."
According to a decree issued by UAE Minister of Interior Sheikh Saif bin Zayed al-Nahayan, owners of built-up properties can stay for six months from the date of entry into the country.
After six months, owners would have to leave the country and would be granted re-entry only if they meet certain conditions, including that their property be wholly owned, built, worth least 1 million dirhams and fit for accommodation by a family.
The owner should also have a fixed income of no less than 10,000 dirhams a month, or the equivalent in a foreign currency. The visit visa does not give the owner the right to work in the UAE, the decree said.
"More clarity is needed," said Sana Kapadia, vice president, equity research at EFG-Hermes in Dubai. "It depends whether it means 1 million dirhams at the time of purchase or if is the current selling price."
Real estate prices in Dubai, for instance, have tumbled 41 percent in the first three months of 2009, according to property consultants Colliers.
Home prices rallied during a six-year boom spurred by Dubai's decision in 2002 to allow foreigners to invest in some properties on a freehold basis.
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Wannaberich
New Member
Long term visas are a tool fo Dubai to kickstart the real estate market yet they have gone for something that is a waste of time.I have read that Dubai cannot make up visa rules,its down to Abu Dhabi.Whether this is true or not who knows.
Obviously those in power have no consideration for real estate investors who are suffering.They have their money and thats all they care about.The have acted very slowly to try and combat the problem of crooked developers of which there are many.
Trouble is,the goverment can think they dont have to do anything to help,yet by standing by and doing nothing they are putting off many potential future investors from buying into Dubai.So ultimatley they will pay a price.
Obviously those in power have no consideration for real estate investors who are suffering.They have their money and thats all they care about.The have acted very slowly to try and combat the problem of crooked developers of which there are many.
Trouble is,the goverment can think they dont have to do anything to help,yet by standing by and doing nothing they are putting off many potential future investors from buying into Dubai.So ultimatley they will pay a price.
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AjmanInvestor
Banned
Pure waste of time
pure waste of time, they are killing the market by doing this.....real estate will never ever pick up again in the gulf region,,,,,,,,if they introduced these types of rules and regulations,,,,,,,,no matter how good this gulf region is but they have to think about long term ie after 2010,,,,,,and also about the expats they have to take care of them and honour them.....its like an abuse this laws and regulations...visa rules for freehold etc...its a mockery of laws...and system.....Long term visas are a tool fo Dubai to kickstart the real estate market yet they have gone for something that is a waste of time.I have read that Dubai cannot make up visa rules,its down to Abu Dhabi.Whether this is true or not who knows.
Obviously those in power have no consideration for real estate investors who are suffering.They have their money and thats all they care about.The have acted very slowly to try and combat the problem of crooked developers of which there are many.
Trouble is,the goverment can think they dont have to do anything to help,yet by standing by and doing nothing they are putting off many potential future investors from buying into Dubai.So ultimatley they will pay a price.
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revolutionary
New Member
Positive!
Well I'm quite surprised at the negative reaction. The more I read about the visa for freehold the more I like it. Maybe there is quite a bit of self-interest here as my place is borderline million and those should prove the most popular as if slightly below now then buyers may well be willing to pay a full seven digits to get the visa.
Leaving the country twice a year is not at all onerous and it may be just over the border for a night with online re-registration for visa. I'm hoping they have thought the details out carefully since those residents that go over the border by car and return as non-residents will have all sorts of problems with Driving Licenses and Car Insurance.
I'm looking forward to getting residency but the driving license thing may be an issue - car hire on visitor visa and international driving license is so easy and I've heard nightmare stories about what happens in the interim between visitor and resident.
Well I'm quite surprised at the negative reaction. The more I read about the visa for freehold the more I like it. Maybe there is quite a bit of self-interest here as my place is borderline million and those should prove the most popular as if slightly below now then buyers may well be willing to pay a full seven digits to get the visa.
Leaving the country twice a year is not at all onerous and it may be just over the border for a night with online re-registration for visa. I'm hoping they have thought the details out carefully since those residents that go over the border by car and return as non-residents will have all sorts of problems with Driving Licenses and Car Insurance.
I'm looking forward to getting residency but the driving license thing may be an issue - car hire on visitor visa and international driving license is so easy and I've heard nightmare stories about what happens in the interim between visitor and resident.
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DelboyG
New Member
Don't get too optimistic there, it's not an over night visa change - it's 1 month out of country!! How will that work if you've got kids in school?? Ohh I forgot - you can't sent the kids to school because they're not residence.Well I'm quite surprised at the negative reaction. The more I read about the visa for freehold the more I like it. Maybe there is quite a bit of self-interest here as my place is borderline million and those should prove the most popular as if slightly below now then buyers may well be willing to pay a full seven digits to get the visa.
Leaving the country twice a year is not at all onerous and it may be just over the border for a night with online re-registration for visa. I'm hoping they have thought the details out carefully since those residents that go over the border by car and return as non-residents will have all sorts of problems with Driving Licenses and Car Insurance.
I'm looking forward to getting residency but the driving license thing may be an issue - car hire on visitor visa and international driving license is so easy and I've heard nightmare stories about what happens in the interim between visitor and resident.
Do you know if the banks will allow you to operate an account if your only a visitor?, can you actually buy a car get a driving license? Or will you have to drive a rental.
Everything you CAN do in the UAE is dependent on your visa status, and this is still a visit visa, so what does anyone gain except more time to hang around and spend your money.
This law is so anti-investor, that I can feel a chill down my spine when I imagine the discussions that went into this!! And for all the small investors in IC / DG / Ajman they about to kill the market dead, this in a time when they should be willing people to stay given the Dubai 2015 goals.
I'm beginning to think Stumbled is right. !!
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patience
New Member
We've been conned!!
It makes me sick, we've all been conned!!!! Next the will start taxing us if we let the place coz we cant live in it. Oh yes I fear more bad news to come!Don't get too optimistic there, it's not an over night visa change - it's 1 month out of country!! How will that work if you've got kids in school?? Ohh I forgot - you can't sent the kids to school because they're not residence.
Do you know if the banks will allow you to operate an account if your only a visitor?, can you actually buy a car get a driving license? Or will you have to drive a rental.
Everything you CAN do in the UAE is dependent on your visa status, and this is still a visit visa, so what does anyone gain except more time to hang around and spend your money.
This law is so anti-investor, that I can feel a chill down my spine when I imagine the discussions that went into this!! And for all the small investors in IC / DG / Ajman they about to kill the market dead, this in a time when they should be willing people to stay given the Dubai 2015 goals.
I'm beginning to think Stumbled is right. !!
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financier888
New Member
6 months - in sufficient
the 6 month visa and having to leave for 30 days - is problematic - primarily - as it relates to the school term if you have children - although, if you incoporate in the FZE - you can then get your residence visa and work visa - at a cost of about AED 30,000 - although an option - if Dubai wants to attract long term residents - the proverbial 'end-users' they keep referring to - they will need to rethink this...
the 6 month visa and having to leave for 30 days - is problematic - primarily - as it relates to the school term if you have children - although, if you incoporate in the FZE - you can then get your residence visa and work visa - at a cost of about AED 30,000 - although an option - if Dubai wants to attract long term residents - the proverbial 'end-users' they keep referring to - they will need to rethink this...
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mpat
New Member
today they announced that renewal can be done immediately and not required to stay for 30 days outside
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georgihh
New Member
Not enoughtoday they announced that renewal can be done immediately and not required to stay for 30 days outside
They need money and this law is a joke, they will change it in a month time as what they have done is even more complicated. Expect to get a 3 years visa with any title deed in a month time; they have no option, but to change this article. I don’t know if the government has any idea what is happening with this place.
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financier888
New Member
I agree - think you're right on this one. They'll need to extend 1-3 terms - based on the investment level... but I reckon it's Abu Dhabi that is dictating the terms on thisNot enough
They need money and this law is a joke, they will change it in a month time as what they have done is even more complicated. Expect to get a 3 years visa with any title deed in a month time; they have no option, but to change this article. I don’t know if the government has any idea what is happening with this place.
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Kjarkata
New Member
Any latest news on visa for freehold property owners?
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devaya
New Member
Clarifications Required !
Could anyone assist with the following questions ?
(1) If someone already has a 3-year Investor (Property) Visa , issued on say
1st January 2008, does he or she have to surrender this Visa and apply for the new (proposed) 6-month visa ? I presume that 3-year Visas already issued would continue to remain valid (till date of expiry) since the full fees have taken by the Government.
(2) If for example somebody owns three completed properties worth
AED.600,000/= each (OP),whereby the total cost of all three is AED.1,8-million, would the person be considered to have an investment of more than
AED.1-million in the UAE as per the new rules ? Some say that at least one property must be worth more than AED.1-million, which in my opinion does not make sense. The total investment is what should be considered.
Thanks all.
Could anyone assist with the following questions ?
(1) If someone already has a 3-year Investor (Property) Visa , issued on say
1st January 2008, does he or she have to surrender this Visa and apply for the new (proposed) 6-month visa ? I presume that 3-year Visas already issued would continue to remain valid (till date of expiry) since the full fees have taken by the Government.
(2) If for example somebody owns three completed properties worth
AED.600,000/= each (OP),whereby the total cost of all three is AED.1,8-million, would the person be considered to have an investment of more than
AED.1-million in the UAE as per the new rules ? Some say that at least one property must be worth more than AED.1-million, which in my opinion does not make sense. The total investment is what should be considered.
Thanks all.
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PropGuy
New Member
Well Emaar is still continuing with property visas for 3 years policy.
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Kjarkata
New Member
What about NAKHEEL, are they still processing 3 year investor visas?
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patience
New Member
Surely that can't be true, so unfair for other investors with other developers!Well Emaar is still continuing with property visas for 3 years policy.
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PropGuy
New Member
Well, you can go to their customer service and ask for yourself. But I know few people who have renewed their visa through Emaar just recently and they said Emaar is still renewing visas. I don't know about other developers. But visa rules are made on federal level, this was a loophole for Dubai to workaround federal issues with the visa. But not sure how this will go in the long-term. So I believe Nakheel, Emaar and other developers would still try to support 3 years investor visa policy. But I prefer visa rules to change on federal level in favor of investors.Surely that can't be true, so unfair for other investors with other developers!
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Kjarkata
New Member
Has the new law issued. There seems to be lot of confusion specifically for the investors of ajman
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