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Senior Development Manager
Industry: Property
Location: Dubai, UAE -
Development Manager
Industry: Property
Location: Dubai, UAE
Real estate investors not entitled to residency
by Tamara Walid on Tuesday, 24 June 2008
NO RESIDENCY: Dubai will only introduce short-term visas for foreign investors in the real estate sector, the emirate's Real Estate Regulatory Agency has said.
(Getty Images)
(Getty Images)
Dubai will introduce short-term visas for foreign investors in the real estate sector, the emirate's Real Estate Regulatory Agency (RERA) announced on Monday.
Marwan Bin Galita, chief executive of RERA, told UAE daily Gulf News the agency had submitted proposals to the government to review visas for property buyers.
Bin Galita said there was no link between property ownership and residence visas, and developers shouldn’t attract investors to buy into property with a promise of a residence visa.
However, his comments appear to contradict the government’s earlier stand.
As the government opened Dubai’s property sector to foreign investors in selected freehold areas in 2002, a proper real estate law was absent.
The leading three master developers Emaar, Nakheel and Dubai Properties had promised to facilitate a three-year renewable residence visas to owners of freehold properties under a special arrangement with the residency department.
More than 20,000 families have moved into their freehold homes during the last six years, many on residence visas linked to their homes.
Recently, a senior government official said foreign buyers are entitled to residence visas if they purchase property, but this was a misconception, the newspaper said.
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USER COMMENTS (10 COMMENTS)
Government BackTracking
Posted by Ashraf, Dubai, UAE on 30 June 2008 at 06:14 UAE time
THe blame rests 100% on the government. It is really strange that the government is making statements to the contrary 5 years down the road. Why did it not stop its agencies (Emaar, Nakheel and Dubai Investments) way back in 20023 when these offers were beng made?
Perhaps at that time government wanted to lure investors in its new idea of generating money by selling sand to foreigners.
This and I am sure many other issues will continue to appear on the scene until a complete property law is enacted.
Posted by Ashraf, Dubai, UAE on 30 June 2008 at 06:14 UAE time
THe blame rests 100% on the government. It is really strange that the government is making statements to the contrary 5 years down the road. Why did it not stop its agencies (Emaar, Nakheel and Dubai Investments) way back in 20023 when these offers were beng made?
Perhaps at that time government wanted to lure investors in its new idea of generating money by selling sand to foreigners.
This and I am sure many other issues will continue to appear on the scene until a complete property law is enacted.
Residency visa with property
Posted by Graham, Dubai, UAE on 29 June 2008 at 15:45 UAE time
Unfortunately this has been driven by greed on both sides. Buy the purchaser seeing these amazing returns suddely seem to forget the basics in real estate investment that you would do in UK for example if buying a property; 1) have a land deed that is clear - not so yet in Dubai yet 2) have a lawyer - tell you what can be built infront/around your property (so no 6 lane highways suddenly built next to your quiet neighbourhood- greens - or you sea view becoming a view of somebodies toilet window - marina) and who would have checked UAE law to see if there was a law to give residency with property (no there was never and will unlikely be since this is a federal law and individual emirates can not just ignore - so even residency given by setting up company in RAK for 20,000dhs could be blown out off water by powers that be in Abu Dhabi) and 3) getting a surveyor to tell you how long it will stand up for.
From the sellers - they have been greedy to see real estate prices go up and therefore made these promises
Posted by Graham, Dubai, UAE on 29 June 2008 at 15:45 UAE time
Unfortunately this has been driven by greed on both sides. Buy the purchaser seeing these amazing returns suddely seem to forget the basics in real estate investment that you would do in UK for example if buying a property; 1) have a land deed that is clear - not so yet in Dubai yet 2) have a lawyer - tell you what can be built infront/around your property (so no 6 lane highways suddenly built next to your quiet neighbourhood- greens - or you sea view becoming a view of somebodies toilet window - marina) and who would have checked UAE law to see if there was a law to give residency with property (no there was never and will unlikely be since this is a federal law and individual emirates can not just ignore - so even residency given by setting up company in RAK for 20,000dhs could be blown out off water by powers that be in Abu Dhabi) and 3) getting a surveyor to tell you how long it will stand up for.
From the sellers - they have been greedy to see real estate prices go up and therefore made these promises
I'm Confused
Posted by Trevor on 29 June 2008 at 11:45 UAE time
As far as I was aware the law is relatively straightforward. The master developer can apply on behalf of the owner to the Residency Department for a 3 year residency permit if the owner has no alternative. The residency is granted at the option of the Ministry on the same terms as normal residency.
Anything else is just spin. Did you get your contract looked at by a lawyer?
Posted by Trevor on 29 June 2008 at 11:45 UAE time
As far as I was aware the law is relatively straightforward. The master developer can apply on behalf of the owner to the Residency Department for a 3 year residency permit if the owner has no alternative. The residency is granted at the option of the Ministry on the same terms as normal residency.
Anything else is just spin. Did you get your contract looked at by a lawyer?
ABSURD LAWS
Posted by jay, Kuwait, Kuwait on 28 June 2008 at 21:03 UAE time
A law is a binding on any Government towards its citizens or residents. The Laws should be clarified BEFORE foreigners are lured to invest their hard earned lifetime savings. I sincerely wish that the Govt steps in to put an end to all this exploitation and clarifies the rules to clear Dubai's tarnished image.
Posted by jay, Kuwait, Kuwait on 28 June 2008 at 21:03 UAE time
A law is a binding on any Government towards its citizens or residents. The Laws should be clarified BEFORE foreigners are lured to invest their hard earned lifetime savings. I sincerely wish that the Govt steps in to put an end to all this exploitation and clarifies the rules to clear Dubai's tarnished image.
No RV for Investors
Posted by madjedi, Paris, france on 25 June 2008 at 20:50 UAE time
This measure, if confirmed, would have a major negative impact on property prices and on developers in Dubai. Many foreigners have purchased property to obtain official residency in Dubai for tax or other reasons. They will have to move to other Emirates which have not abolish this entitlement.
Posted by madjedi, Paris, france on 25 June 2008 at 20:50 UAE time
This measure, if confirmed, would have a major negative impact on property prices and on developers in Dubai. Many foreigners have purchased property to obtain official residency in Dubai for tax or other reasons. They will have to move to other Emirates which have not abolish this entitlement.
Residency
Posted by Jack, Dubai on 25 June 2008 at 18:06 UAE time
The region is fraught with 'foot in mouth' statements, however, no smoke and all that...if true then it looks like the 'honeymoon' could be over and the realities of investing in a 'developing' country, without the right mechanisms in place at the start, are beginning to manifest themselves...
Posted by Jack, Dubai on 25 June 2008 at 18:06 UAE time
The region is fraught with 'foot in mouth' statements, however, no smoke and all that...if true then it looks like the 'honeymoon' could be over and the realities of investing in a 'developing' country, without the right mechanisms in place at the start, are beginning to manifest themselves...
SHOW ALL COMMENTS
Hello and Goodbye
Posted by Kenny, Dubai, UAE on 25 June 2008 at 18:02 UAE time
First it is you can have your pets in your owned property and then its no you cannot. Next they take away the residency permit that was promised with the purchase of property. When can we expect them to take away your property, whereupon, they give you the compensation they want to give and it is take it or leave it. Let's not forget that we are living in the Middle East and the confidence they thought they installed in people is now fast dwindling.
Posted by Kenny, Dubai, UAE on 25 June 2008 at 18:02 UAE time
First it is you can have your pets in your owned property and then its no you cannot. Next they take away the residency permit that was promised with the purchase of property. When can we expect them to take away your property, whereupon, they give you the compensation they want to give and it is take it or leave it. Let's not forget that we are living in the Middle East and the confidence they thought they installed in people is now fast dwindling.
Surprise...Surprise
Posted by Asad, Dubai, UAE on 25 June 2008 at 09:03 UAE time
I am wondering isn't it high time that Dubai Govt. made correct statements and set records right instead of having senior Dubai executives making comments and confusing everyone. If there is no Residence Visa why should anyone by a property and get stuck with it?
Posted by Asad, Dubai, UAE on 25 June 2008 at 09:03 UAE time
I am wondering isn't it high time that Dubai Govt. made correct statements and set records right instead of having senior Dubai executives making comments and confusing everyone. If there is no Residence Visa why should anyone by a property and get stuck with it?
Dubai better get it right for all
Posted by jude C on 24 June 2008 at 21:59 UAE time
It is a shame that certain govt. depts cannot seem to get things right. What happens to all the people who bought property 'believing' in the govt. of Dubai and its vision? It really is a shame ...... how many more examples like this before we all lose faith in this place?
Posted by jude C on 24 June 2008 at 21:59 UAE time
It is a shame that certain govt. depts cannot seem to get things right. What happens to all the people who bought property 'believing' in the govt. of Dubai and its vision? It really is a shame ...... how many more examples like this before we all lose faith in this place?
Could have big impact
Posted by Cutter, Qatar on 24 June 2008 at 15:47 UAE time
This is a very dangerous statement. I was interested in purchasing a property in Dubai basically for the Residence Permit and the tax advantages the RP will grant me. If they don't issue an RP, there is no reason for me to purchase in UAE.
Posted by Cutter, Qatar on 24 June 2008 at 15:47 UAE time
This is a very dangerous statement. I was interested in purchasing a property in Dubai basically for the Residence Permit and the tax advantages the RP will grant me. If they don't issue an RP, there is no reason for me to purchase in UAE.
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