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]

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]

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.

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Now the latest one
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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.


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"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]

What ?!!!!

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]

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

 

[really_true]

This is a country full of contradictions
esp the govt agencies one will say something
another will come out and have a a twist in it

Let the water clear this is where the investors make money

 

[New_Investor]

Guys,

I just bought a 1 BD at badrah Phase 2 and i specifically was curious about this point and they said Visa will be provided, also it's clearly stated in the reservation contract that visa will be provided to the owner, spouse and children upto age of 18 and unmarried daughters !!!!

no who should we believe, the developer or the news ??????

 

[Roshan]

Guys,

I just bought a 1 BD at badrah Phase 2 and i specifically was curious about this point and they said Visa will be provided, also it's clearly stated in the reservation contract that visa will be provided to the owner, spouse and children upto age of 18 and unmarried daughters !!!!

no who should we believe, the developer or the news ??????

Eventually they will clear this doubt. Dubai has grown in leaps and bounds in the last few years. Too much for any country to digest.

Logically speaking, what's the point of buying freehold if they cannot stay in it.

The land department does not have control over the immigration department. That's why this doubts. It's only matter of time before the ruler issues a decree.

Regards

Roshan

 

[girlinterrupted]

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

I think that is a very biased comment and not to mention ignorance on the part of the commentator. You are forgetting a big majority of other middle eastern countries apart from the GCC who have a big presence in UAE namely Labenese, Egyptians, Syrians, Palestinians etc who also need a visa to enter the country.

Secondly most of the investors who invest in UAE whether they are from the UK Canada, or European countries would like to have a residence visa without having to travel in and out of the country once they have outlived their stay.

Third and very important fact is that majority of money is coming from investors that were mentioned above namely Iran, Iraq, Pakistan, India, Bangladesh and this will definitely put a dampener on the investment if true.

I agree with the member who said that the Land Department is not related to the Residency Department as the residency department still reserves the right to refuse. Therefore I would give more weight to the first news issued by the official of the residency department.

Nevertheless issuing contradictory statements in succession is bound to create further confusion and lower investors confidence no matter what their nationality. Property is a major investment in anyone's life whether you are buying for yourself to live in or buying for investment purposes, you want to feel safe, assured and know that the process is transparent. This news will further confuse the buyer rather than clarify anything.

I am sure that the government will further clarify this issue which would reassure the investor.

 

[Roshan]

Guys,

I just bought a 1 BD at badrah Phase 2 and i specifically was curious about this point and they said Visa will be provided, also it's clearly stated in the reservation contract that visa will be provided to the owner, spouse and children upto age of 18 and unmarried daughters !!!!

no who should we believe, the developer or the news ??????

While your property appreciates, relax. It's only a matter of time when they set the record straight.

What is the meaning of freehold if you cannot stay in it. Dubai has invested much to much and will not alolow such a point to spoil the party..

It's only the matter of time when this issue will be sorted out.

If the visa clause is in the contract, you are even more protected.

Regards

Roshan

 

[New_Investor]

While your property appreciates, relax. It's only a matter of time when they set the record straight.

What is the meaning of freehold if you cannot stay in it. Dubai has invested much to much and will not allow such a point to spoil the party..

It's only the matter of time when this issue will be sorted out.

If the visa clause is in the contract, you are even more protected.

Regards

Roshan

Thanks Roshan for the comforting words, by the way there are a lot of other ways to get a visa in Dubai and resident visa should be the last thing that bother them, for example, most of western nationals they can get visit visa for 100 AED per month, so worse case scenario that they will have to pay 1200 per year, which will not happen, as also buy only having business starting buy 25000 AED you can get an investor visa, which i recommend if you are going to have a lot of business in Dubai + you have the normal resident visa which any of your family member will provide and most importantly normally if you are going to live in Dubai then most properly you'll also work here which will automatically secure a resident visa and a labor approval as well, and the good thing is that u'll not have to pay a penny for your visa, it will be borne by your company/....

 

[uae properties]

Yes, it is a fact.
No residency visas, only visit visas.
The visit visas will have several categories. eg. the owner will be granted a 2 week visit visas if he/she wishes to collect the rent.
Like any any investment globally, residency visas are not purchased with investments.
All signs point to something big going to happen.
Prices have started to fall and it may get worse.
As they say, "cash is king"

 

[revolutionary]

Yes, it is a fact.
No residency visas, only visit visas.
The visit visas will have several categories. eg. the owner will be granted a 2 week visit visas if he/she wishes to collect the rent.
Like any any investment globally, residency visas are not purchased with investments.
All signs point to something big going to happen.
Prices have started to fall and it may get worse.
As they say, "cash is king"

It does make sense not to give residency visa linked solely with ownership of real estate investments. However in many cases, that real estate is someone's intended main residence and was bought based on the widely stated 'fact' that residency would be sponsored by the Master Developer.

I am one of those that intend to move to become resident in Dubai and use my apartment as my main residence. Considering the type of work I perform flying into Europe every week, there was no requirement to seek an employment visa, but my choice of Dubai was based on being near my family. A resident visa in this case would be valuable to avoid frequent applications and uncertainty.

I'm sure there must be many people who bought their Dubai residence with a view to retirement. Again no requirement to have an employment visa but relying on visit visas would not make for a hassle-free retirement.

I had been considering the purchase of an office in one of the Freezones so that I could get the employment visa 'automatically' but now for me that is also discredited.

When I initially looked at the linking of residence visas to freehold homes and employment visas to freehold offices, I thought Dubai had really hit on something that would definitely attract high value people looking for clarity and certainty. Buy an apartment and guarantee to live in a safe cosmopolitan environment, buy an office and enjoy 0% income and business taxes. Very attractive! Not so attractive now with all this uncertainty.

 

[uae properties]

Yep.
The developers, how should I put it : mis-stated the offer of the residency visas.
Ask any developer: who authorized them to sell residency visas?.....no answer!
Yes, it was a potential offer.
I believe the DNRD will loo at each case on an individual basis and decide.
An investment is not a ticket to residency, jusy an investment.
The residency is another issue altogether.

 

[Teddy Tuesday]

When I opened a bank account with Emirates bank they said it will be upgraded to a full service account ie access to credit cards etc once I had a residents visa. This visa I was told becomes available once the development I invested in is complete and I become 100% owner.

If the banks are spreadind this word who knows?