Residence Visa in Dubai

[sgaur]

Today's newpaper in Kuwait, has published a news that developers like emaar has started sending letters to investors that Dubai govt. has stopped providing residence visa to investors. If this is true, what will be the impact on prices of realestate in dubai?

I feel prices will fall drastically. What is the opinion of Gurus in this forum?

 

[Cemo]

Visas for Ajman buyers


14 August 2008
Property buyers in Ajman will now be given residence visas after master developers gave a written assurance to that effect to project developers in the emirate.

The visas will be valid for one year and will have to be renewed annually, said several project developers that Emirates Business spoke to. They said they are entering into agreements with the master developers with a clear mention of assurances from the latter on the issuance of visas.

Harry Kantaria, managing director of Aspire Real Estate, which is selling projects in Ajman's Marmooka City, said: "The written assurance has been made a part of the contract and since most of the master developers are government-owned there is unlikely to be any problems on this front."

Yasser A Alnemer, general manager of Saudi Arabia-based developer Berjal Properties, which is developing the Dh15 billion, 30 million sq ft Berjal City, said: "We have it in writing from the government that residence visas will be issued to people who buy properties in our project, but it all depends on meeting certain conditions."

A residence visa will be granted only after the investor or buyer gets possession of the apartment and the developer issues a no-objection letter. The visa costs about Dh1,500 and has to be renewed in Ajman every year, it is learnt.

Christina Cabading, president of BSEL Infrastructure Realty, said: "We have it in writing that master developers will be granting residence visas to our buyers."

BSEL is developing seven towers in Emirates City. The firm has already launched five towers and will be launching another two soon.

Fahad Sattar Dero, chief executive officer of Sweet Homes Real Estate, said earlier contracts did have a visa clause, but new additions, such as "according to UAE law", have been incorporated in the latest contracts.

Sweet Homes is building Ajman Uptown, a Dh2.5bn residential township with 1,504 villas and townhouses, seven buildings, serviced apartments and a hotel.

Latest information suggests visas in Dubai will not be guaranteed for buyers of freehold property.
By Parag Deulgaonkar

© Emirates Business 24/7 2008

Article originally published by Emirates Business 24/7 14-Aug-08

 

[Doobedoo]

You do have to wonder - are we now supposed to believe that we can all be 100% assured of visas with property in Ajman when they've just pulled the rug in Dubai?

I understand that the government never actually confirmed visas with Dubai property but we all must agree that there was a clear 'sense' from Dubai government since 2002 that this was the general rule.

The quotes in the above piece while lending an air of credibility today, will be worthless should the government change their minds in the future just has been the case in Dubai... and all we'll hear will be "well, we never actually guaranteed a visa,...", "it was about developer sponsorship..." etc etc.

At the end of the day the rules / laws can change on a whim based on market dynamics to keep the plates spinning as we've seen - so, as always, it's buyer beware.

 

[talk]

You do have to wonder - are we now supposed to believe that we can all be 100% assured of visas with property in Ajman when they've just pulled the rug in Dubai?

I understand that the government never actually confirmed visas with Dubai property but we all must agree that there was a clear 'sense' from Dubai government since 2002 that this was the general rule.

The quotes in the above piece while lending an air of credibility today, will be worthless should the government change their minds in the future just has been the case in Dubai... and all we'll hear will be "well, we never actually guaranteed a visa,...", "it was about developer sponsorship..." etc etc.

At the end of the day the rules / laws can change on a whim based on market dynamics to keep the plates spinning as we've seen - so, as always, it's buyer beware.

RERA....has now annoyed a lot of people by telling them there is no link in buying a property to get a visa.Visa's can still be obtained,but LONG TERM VISA'S can be an issue.I honestly believe anything Rera does will be good for Dubai in the long term.Investor form neighbouring countries won't be happy, but a lot of them purchased hoping for long term visa's auto.I do understand why GOV will not allow this and everyone should accept that.

Please would any investor not from a neighbouring country tell me what issues they have reguarding visa's.

 

[sgaur]

Dear Talk

As I understood, the demand of property in dubai was mainly because of instability in Iran, Pakistan and African countries for their second residence. If those people will not get residence visa, obiviously, they will not invest in Dubai and demand will go down and prices will also comedown.

I am very sure that this step will reduce the demand in Dubai and as a result prices will go down. How much!!!!!! is a question mark at this moment.

 

[London32]

Today's newpaper in Kuwait, has published a news that developers like emaar has started sending letters to investors that Dubai govt. has stopped providing residence visa to investors. If this is true, what will be the impact on prices of realestate in dubai?

I feel prices will fall drastically. What is the opinion of Gurus in this forum?

I have checked a few news paper sites and I could not find anything... Is this true?

What would be the way to get residence visa then?

 

[sgaur]

You can read this article

Arab Times :: Dubai developers remove visa guarantee

 

[talk]

Dear Talk

As I understood, the demand of property in dubai was mainly because of instability in Iran, Pakistan and African countries for their second residence. If those people will not get residence visa, obiviously, they will not invest in Dubai and demand will go down and prices will also comedown.

I am very sure that this step will reduce the demand in Dubai and as a result prices will go down. How much!!!!!! is a question mark at this moment.

Sorry but I would have to disagree with your comment reguarding demand for property in Dubai is mainly because of instability in neighbouring countries.Demand is worldwide,and if we rely on the instability of other countries then Dubai could end up an empty city.The GOV must have strict controls over visa's for many reason,not just instability of other countries.As Dubai grows an influx of evil will appear from many worldwide countries and the GOV will use visa control as 1 method of keeping crime under control.

Is it not correct to say that Dubai and it's leaders should control Dubai and not others.

There's many types of visa's you can apply for and few countries worldwide offer long term visa's.

What do you consider a long term visa to be..3/5/10 years?


Could any estate agent/developer give any idea of what % of sales relate to "investors from instable countries" for any development.

 

[sgaur]

Dear talk

I also disagree with your comments as price has fallen down drastically in USA/UK. You will not believe, the prices at this moment are just 60% of prices at peak in USA. There is downfall in UK also. Price are atleast 20% down in India. Price were going up only in Dubai at same moment. But this law may bring down the prices in Dubai also.

 

[Cemo]

here is the news article

I have checked a few news paper sites and I could not find anything... Is this true?

What would be the way to get residence visa then?

 

[talk]

Dear talk

I also disagree with your comments as price has fallen down drastically in USA/UK. You will not believe, the prices at this moment are just 60% of prices at peak in USA. There is downfall in UK also. Price are atleast 20% down in India. Price were going up only in Dubai at same moment. But this law may bring down the prices in Dubai also.

Yes I agree with your comments about USA/UK,INDIA and falling prices.Each country has it's own reason though.eg. Inflation, unemployment and the mis-selling of banking products more importantly.This will certainly reduce the flow of investors to Dubai with lack of funds/cashflow etc.

A large number of investors in Dubai are flippers,which we all know will sooner rather than later ware out a market.With the new morgage law soon to be in place this will also slow demand.Slowing demand will bring slower construction and through time the market will stabilise bringing strong investment and not just those out to make a fast buck.

At present the market is anything but stable,but the Dubai GOV must try to do what other countries failed to do and keep the market as safe as it can,and moving slowly forward keeping strong large investors happy.
The slowdown in demand will not stop the GOV using it's funds to create a super Dubai.

I beleive the GOV will create many new laws as Dubai grows,but also change them when they need to ,to keep the market safe.At present there is to many unstable investors in the Dubai Market and the GOV must protect the market and strong investors.

The up and down visa situation is part of a controlled plan and will change as Dubai needs it to.