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Industry: Property
Location: Dubai, UAE
Dubai risks scaring off investors with visa u-turn
by John Irish on Tuesday, 24 June 2008
INVESTOR CONFIDENCE: ING said the announcement expat homeowners in Dubai are not automatically entitled to long-term residency could hit property sales. (Getty Images)
Foreigners could be less likely to buy properties in Dubai after the emirate's real estate regulator said expatriate homeowners are not automatically entitled to long-term residency rights, ING said on Tuesday.
"There is no direct link" between owning a property in Dubai and obtaining a residency visa, Chief Executive of the emirate's Real Estate Regulatory Authority (RERA), Marwan bin Ghalita, was quoted by daily Gulf News as saying on Tuesday.
The comments were contrary to prior statements from local developers such as Emaar Properties, the Arab world's largest real estate firm by market value, ING said, noting the remarks could trigger "negative sentiment" and impact Emaar's stock.
Dubai, the commercial hub of the Arab world, has witnessed a property boom since the government allowed foreigners to invest in properties in 2002. The emirate passed a real estate law in 2006 allowing foreign freehold ownership in some areas.
Expatriates from neighbouring countries facing political instability, such as Pakistan, Lebanon and Iran, have been lured to Dubai largely on the assumption that owning a property would entitle them to long-term visas, ING said.
"People from politically/economically unstable countries in the region bought residences in Dubai assuming they would automatically be granted residency, a huge asset to have if the situation in their home countries turned sour," ING said.
"Dubai was the only market in the region to offer such a link."
But bin Ghalita's comments on Tuesday raised questions about whether the promise of residency from developers, including state-owned Dubai Properties and Nakheel, has legal backing, ING said.
"Developers should not lure investors to the property sector with a promise of residence visa," bin Ghalita was quoted as saying.
The existence of "safety homes" in Dubai has been a key factor driving demand, and any decision by regulators to review the visa status of existing homeowners would create a "legal minefield" and could hit the emirate's image, ING said.
"Owners will feel they have been sold a worthless investment and what's more by developers that are all linked very closely to the state in Dubai," the bank said.
Shares of Emaar Properties slipped 0.45 percent on Tuesday while those of Union Properties fell 2.68 percent.
The regulator, meanwhile, has submitted a proposal to the government to grant foreigner homeowners visit visas, a rule that could also apply to existing homeowners if it is approved, bin Ghalita said.
Foreigners comprise more than 80 percent of the population in the United Arab Emirates, home to about 4.1 million people, the majority from the Indian subcontinent, Iran and other Arab countries. (Reuters)
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USER COMMENTS (14 COMMENTS)
Is this really a problem?
Posted by sid, Sharjah on 27 August 2008 at 11:11 UAE time
Hmm.. I think this would be a problem for those who were planning to stay here for the rest of their lives. But I personally don't know any one who does. Face it, we're all here for a period of time, to make money, save it and get out. There are those who get lucky, or are smart enough to do that. The rest just run after the dream. Well, that dream just moved a little further out of reach.
I think because of the huge boom in the housing and working market, the government of Dubai doesn't feel it needs to stick to something that it has implied all along, namely residence visas.
But I have a feeling that the tables will turn in a few years and they will need to revert on their decisions and make good on their promises.
Just a question of Supply and Demand.
Posted by sid, Sharjah on 27 August 2008 at 11:11 UAE time
Hmm.. I think this would be a problem for those who were planning to stay here for the rest of their lives. But I personally don't know any one who does. Face it, we're all here for a period of time, to make money, save it and get out. There are those who get lucky, or are smart enough to do that. The rest just run after the dream. Well, that dream just moved a little further out of reach.
I think because of the huge boom in the housing and working market, the government of Dubai doesn't feel it needs to stick to something that it has implied all along, namely residence visas.
But I have a feeling that the tables will turn in a few years and they will need to revert on their decisions and make good on their promises.
Just a question of Supply and Demand.
changes in visit rules
Posted by zaheer, dubai, uae on 28 July 2008 at 17:38 UAE time
Changes in visit visa fees will badly effect small investors and persons who comes to buy goods from wholesale market. Changing visa conditions will effect the persons who come to find job.
Posted by zaheer, dubai, uae on 28 July 2008 at 17:38 UAE time
Changes in visit visa fees will badly effect small investors and persons who comes to buy goods from wholesale market. Changing visa conditions will effect the persons who come to find job.
Dubai...dont make me laugh??
Posted by sam, dubai, uae on 9 July 2008 at 12:58 UAE time
It has always been the case in Dubai or the UAE as a whole...no government planning and going with the flow (as they say). My family moved to Abu Dhabi in the 70s and all we have seen is laws being put in place without any thought about the consequences.
Not enough electricity supply, sewage flooding the roads, high rents, daily expenses forever increasing is only a few indicators that allow me to conclude, dubai is a disaster waiting to happen.
After all the foreign investment that has been injected into the city and then the government is going back on their word regarding residencies...what next? Income tax, property tax soon they will be charging you to breathe!!
How can anybody trust a country and its government with all the mess that is seen in dubai today. GOOD LUCK!!
Posted by sam, dubai, uae on 9 July 2008 at 12:58 UAE time
It has always been the case in Dubai or the UAE as a whole...no government planning and going with the flow (as they say). My family moved to Abu Dhabi in the 70s and all we have seen is laws being put in place without any thought about the consequences.
Not enough electricity supply, sewage flooding the roads, high rents, daily expenses forever increasing is only a few indicators that allow me to conclude, dubai is a disaster waiting to happen.
After all the foreign investment that has been injected into the city and then the government is going back on their word regarding residencies...what next? Income tax, property tax soon they will be charging you to breathe!!
How can anybody trust a country and its government with all the mess that is seen in dubai today. GOOD LUCK!!
A Mirage
Posted by Sajjad, stoke on trnet, UK on 8 July 2008 at 17:52 UAE time
Yes other countries dont automatically issues visas on property purchase but other countries didnt promise to issue Visa's/residency on property ownership.
Its another case of the government not sticking to its word. Its a real shame becuase all they have acheived is to damage Dubai's reputation.
Posted by Sajjad, stoke on trnet, UK on 8 July 2008 at 17:52 UAE time
Yes other countries dont automatically issues visas on property purchase but other countries didnt promise to issue Visa's/residency on property ownership.
Its another case of the government not sticking to its word. Its a real shame becuase all they have acheived is to damage Dubai's reputation.
U Turn on Residency Visas
Posted by J K Motwani, Dubai, UAE on 7 July 2008 at 15:18 UAE time
Like many other things, you can trust anyone or anything until and unless its on paper. The U-turn that has been made will change a lot of things and will DEFINITELY impact the market albeit after the boom is over. I believe this U-turn on residency issue will spark an outrage when the economy starts to suffer and not before. Till then I think that all investors who bought either for visa purpose or as investment will not pull out as in the middle of the boom nobody would be foolish enough to withdraw from this market simply because of the visa issue.
There are those who feel cheated and will never trust the authorities simply because they promise but never deliver on their words. In my culture we say a man who goes back on his words is not a man at all.
Posted by J K Motwani, Dubai, UAE on 7 July 2008 at 15:18 UAE time
Like many other things, you can trust anyone or anything until and unless its on paper. The U-turn that has been made will change a lot of things and will DEFINITELY impact the market albeit after the boom is over. I believe this U-turn on residency issue will spark an outrage when the economy starts to suffer and not before. Till then I think that all investors who bought either for visa purpose or as investment will not pull out as in the middle of the boom nobody would be foolish enough to withdraw from this market simply because of the visa issue.
There are those who feel cheated and will never trust the authorities simply because they promise but never deliver on their words. In my culture we say a man who goes back on his words is not a man at all.
Dubai - THE true TRANSIT Destination
Posted by I.Khan, Sharjah, United Arab Emirates on 1 July 2008 at 18:04 UAE time
It is in the nature of Dubai to remain a True Transit Place so lets us expats not fool ourselves. Why are we here - not to spend our whole lives of course. You can never call this place home. Flip - you will
Posted by I.Khan, Sharjah, United Arab Emirates on 1 July 2008 at 18:04 UAE time
It is in the nature of Dubai to remain a True Transit Place so lets us expats not fool ourselves. Why are we here - not to spend our whole lives of course. You can never call this place home. Flip - you will
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U turn
Posted by Mpower on 1 July 2008 at 15:29 UAE time
My overall goal of owning my apartment is that at the end of the day I will be able to live here, park my funds, conduct business and in a minuscule way help in the growth of UAE in general.
Dubai has always been more transparent than this.
Posted by Mpower on 1 July 2008 at 15:29 UAE time
My overall goal of owning my apartment is that at the end of the day I will be able to live here, park my funds, conduct business and in a minuscule way help in the growth of UAE in general.
Dubai has always been more transparent than this.
What a load of rubbish!
Posted by Sophia, UK on 1 July 2008 at 11:15 UAE time
People are complaining that migrants from unsafe countries are buying houses and expecting visas...what exactly is the problem? They have the money to buy a house, are contributing to the economy, how is it anyone's business why they moved here?
The fact is, who wants to take such a risky investment? As everyone's said, laws here seem to have no basis or grounding...In the UK it is a HUGE process to change a law involving hudreds of people, here it seems that a few guys have a coffee and decide to cancel everyone's visa. Absolutely ridiculous.
The Emirates seem to be forgetting how much they depend on foreign workers (in all social brackets) taking interest in this place...Stop taking us for a ride, we helped make this country what it is!
Posted by Sophia, UK on 1 July 2008 at 11:15 UAE time
People are complaining that migrants from unsafe countries are buying houses and expecting visas...what exactly is the problem? They have the money to buy a house, are contributing to the economy, how is it anyone's business why they moved here?
The fact is, who wants to take such a risky investment? As everyone's said, laws here seem to have no basis or grounding...In the UK it is a HUGE process to change a law involving hudreds of people, here it seems that a few guys have a coffee and decide to cancel everyone's visa. Absolutely ridiculous.
The Emirates seem to be forgetting how much they depend on foreign workers (in all social brackets) taking interest in this place...Stop taking us for a ride, we helped make this country what it is!
Visa U turn
Posted by G Coffey, Dubai, UAE on 30 June 2008 at 10:35 UAE time
Owning a property in the UK, USA or any part of Europe does not entitle a person to automatic residency, why do we expect Dubai to be an exception?
Posted by G Coffey, Dubai, UAE on 30 June 2008 at 10:35 UAE time
Owning a property in the UK, USA or any part of Europe does not entitle a person to automatic residency, why do we expect Dubai to be an exception?
Sudden U turn on No Residency visa upon buying property.
Posted by Ashraf Kasmani, dubai, uae on 26 June 2008 at 08:58 UAE time
There is no stability when somebody can suddenly in the morning issue a new rule. How can we develop trust if this is the situation? Same thing is happening now with Salik toll gates. Its original intent was to reduce congestion, but now its focus has moved to revenue generation. After investing huge amounts to spend the rest of our life in a good way, it is in fact the new rules that come up daily that make this difficult.
I think all those who have invested and those who plan to invest should look for another opportunity.
Posted by Ashraf Kasmani, dubai, uae on 26 June 2008 at 08:58 UAE time
There is no stability when somebody can suddenly in the morning issue a new rule. How can we develop trust if this is the situation? Same thing is happening now with Salik toll gates. Its original intent was to reduce congestion, but now its focus has moved to revenue generation. After investing huge amounts to spend the rest of our life in a good way, it is in fact the new rules that come up daily that make this difficult.
I think all those who have invested and those who plan to invest should look for another opportunity.
Ref Visa U Turn
Posted by Tanya Middler, Dubai, UAE on 26 June 2008 at 08:32 UAE time
By all means we understand that many have bought properties in the UAE just for the visa these properties come with.
Many of these individuals do trade and work here under these visas or bring families in from parts of the world that are deemed unsafe to live in and this practice should be stopped.
Dubai should not be seen as a safe haven for all and sundry to descend on. As a long term resident of Dubai I have seen a change in the past four years and not for the better I may add.
However, many of us that have been here for 15 years or more have brought our children up here and many of these children have either never left or have returned and for many of us we have bought properties to retire here. How are we going to do that if we can not obtain visas to reside here through our property purchases.
If these rules are applied then we will be selling up and leaving as will many other expats. They really need to think this through very carefully before making such a huge decision. The only reason we bought property here is to retire in a country that is now our families' home.
Posted by Tanya Middler, Dubai, UAE on 26 June 2008 at 08:32 UAE time
By all means we understand that many have bought properties in the UAE just for the visa these properties come with.
Many of these individuals do trade and work here under these visas or bring families in from parts of the world that are deemed unsafe to live in and this practice should be stopped.
Dubai should not be seen as a safe haven for all and sundry to descend on. As a long term resident of Dubai I have seen a change in the past four years and not for the better I may add.
However, many of us that have been here for 15 years or more have brought our children up here and many of these children have either never left or have returned and for many of us we have bought properties to retire here. How are we going to do that if we can not obtain visas to reside here through our property purchases.
If these rules are applied then we will be selling up and leaving as will many other expats. They really need to think this through very carefully before making such a huge decision. The only reason we bought property here is to retire in a country that is now our families' home.
Visa U turn
Posted by Russel on 25 June 2008 at 16:16 UAE time
If it really is going to be the way mentioned then all the investors have been taken for a ride. Dubai used our money to develop its barren desert. If the investors try and leave, the inevitable property slump is on the cards. There are many who plan to actually make Dubai their new home and not use their properties as rental assets. Future buyers beware.. in this part of the world nothing is sure even if it's written on paper!
Posted by Russel on 25 June 2008 at 16:16 UAE time
If it really is going to be the way mentioned then all the investors have been taken for a ride. Dubai used our money to develop its barren desert. If the investors try and leave, the inevitable property slump is on the cards. There are many who plan to actually make Dubai their new home and not use their properties as rental assets. Future buyers beware.. in this part of the world nothing is sure even if it's written on paper!
property visa dubai
Posted by suzy, leeds, uk on 25 June 2008 at 16:00 UAE time
Well it seems rather unprofessional to actually issue 20,000 families with residence visas against their purchase of properties in Dubai and then change the rules. As a long term resident of the UAE I am used to hearing so many plans and suggestions which don't actually happen, scaremongering I guess. The person who issued this suggestion which needs approval from the Federal Govt is not from the Immigration Dept any way.
Investors have bought property in Abu Dhabi and Ajman what do these Emirates feel about the Real Estate and Regulatory Authority heads statements????
After all the final decisions are made by others not this man. As an investor in Dubai I find it rather a joke and totally unprofessional for this about turn on the visa policy. If it is put in place well Dubai won't be such a good place to invest in. People will be worried how the rules keep changing like the wind direction.!!!!!!
Posted by suzy, leeds, uk on 25 June 2008 at 16:00 UAE time
Well it seems rather unprofessional to actually issue 20,000 families with residence visas against their purchase of properties in Dubai and then change the rules. As a long term resident of the UAE I am used to hearing so many plans and suggestions which don't actually happen, scaremongering I guess. The person who issued this suggestion which needs approval from the Federal Govt is not from the Immigration Dept any way.
Investors have bought property in Abu Dhabi and Ajman what do these Emirates feel about the Real Estate and Regulatory Authority heads statements????
After all the final decisions are made by others not this man. As an investor in Dubai I find it rather a joke and totally unprofessional for this about turn on the visa policy. If it is put in place well Dubai won't be such a good place to invest in. People will be worried how the rules keep changing like the wind direction.!!!!!!
Homeowners ship Visa's
Posted by topgear, London, UK on 25 June 2008 at 11:56 UAE time
This will be a big mistake, I own a property in the Marina and have my residency visa as well title deeds from the land department, my visa is from Emaar. If the situation changes that I cannot come and go as I please, use the banking system etc etc then I will sell up. It makes Dubai unattractive to live in.
I am financially independent and do not require a work visa, so this is my only way to remain in the county legally, some kind of short term property ownership visa would not work .
Also I think that it will put off a lot of Western buyers, its is not a positive view to present to the rest of the world. It now looks like the authorities are going back on there word. Many Europeans will lose confidence overnight at this news, we all remember the Spanish problems.
Posted by topgear, London, UK on 25 June 2008 at 11:56 UAE time
This will be a big mistake, I own a property in the Marina and have my residency visa as well title deeds from the land department, my visa is from Emaar. If the situation changes that I cannot come and go as I please, use the banking system etc etc then I will sell up. It makes Dubai unattractive to live in.
I am financially independent and do not require a work visa, so this is my only way to remain in the county legally, some kind of short term property ownership visa would not work .
Also I think that it will put off a lot of Western buyers, its is not a positive view to present to the rest of the world. It now looks like the authorities are going back on there word. Many Europeans will lose confidence overnight at this news, we all remember the Spanish problems.
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