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Visa issue key to boosting UAE market - experts
Property industry experts on Tuesday said the UAE’s visa plan for expatriate homeowners was key to kick-starting the real estate market.
At the start of last month, the UAE government issued a decree granting foreigners the right to a six-month renewable residency visa if they owned properties worth at least AED1m ($272,300m).
At the time analysts said the move was unlikely to stimulate the market and called for greater clarity on visa and ownership rights.
Speaking at a Cityscape Connect breakfast event on Tuesday attended by members of the property industry, experts said the visa plan was crucial for driving demand in the market.
“The visa issue surrounds so many other things - you can’t live here, you can’t get a driving licence, you can’t open a bank account [unless you have a visa],” said Elaine Jones, CEO of Dubai-based property consultant Asteco.
“If the visa regulation is not palatable, if there are difficulties, there have to be other regulations in place to allow people to live here. There is no point selling a property to somebody who can’t live in it and use it,” she added.
Others said the six month visa plan was too short.
“Six months is quite a short period of time for property ownership, particularly in the current market. I would have liked to have seen a longer period to give people more stability and confidence,” said Steven Henderson, partner at law firm Clifford Chance.
He urged a more collective approach to real estate legislation across the UAE, stressing that the emirates currently dealt with foreign ownership laws differently.
Many of the seven emirates in the UAE have allowed foreign investment in property in recent years.
In 2002 Dubai introduced freehold laws which sparked the emirate’s now collapsed six year real estate boom.
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Posted by Property Guru, Dubai, UAE on 6 June 2009 at 14:59 UAE time
Thanks for agreeing with me. I don't agree with your comment of going to a cheaper place after termination. be it from bombay or canada. You forgot to consider the basic point. If I own a property in Bombay or Canada and if my CEO fired me. I would simply stay in MY property and look for another job. My family don't have to move and my kids don't have to leave PUNE or CANADA. They don't have to leave their friends, teachers.
In any big city, if the housing is taken care of what else is needed. PLEASE PAY ATTENTION THAT IF I LOOSE MY WORK. EVEN IF I HAVE LOT OF WEALTH, I CAN'T STAY HERE.
WHAT IF I HAVE LOT OF MONEY AND I DON'T NEED ANY GOVERNEMENT ASSISTANCE AND I JUST DON'T WANT TO WORK AND SIMPLY WANT TO INVEST MY MONEY. THE ONLY WAY IS TO MAKE A COMPNAY THEN.
SO IF I CAN MAKE A COMPANY, WHY DO I HAVE TO BUY A PROPERTY WHICH CAN'T ASSURE MY STAY IN THE COUNTRY? EVERY ONE WILL THEN RENT ONLY.
THE QUESTION IS WHEN I AGREE TO PUT ALL MY WEALTH OR A GOOD PORTION OF WEALTH IN FORM OF AN IMMOVABLE PROPERTY IN A COUNTRY, DOES IT NOT MAKE ME A SERIOUS CONTRIBUTORY TO THE DEVELOPMENT OF COUNTRY. WHY AM I SO UNDERSIRED THAT I HAVE TO LEAVE THE COUNTRY EVERY SIX MONTHS ?
Posted by robinson, dubai, u,a,e on 5 June 2009 at 19:44 UAE time
dear friends i am here in dubai for the last ten years . dubai is keep on growing . but familys those who are in the middle class are suffering here. every year the rents is going high in dubai
but according to our experience in our work place our salarys are not increceing so naturally you will look for another job
in this time the visa rules will really hurt us a lot ,, i am good example for that . so many will go back to their country
Posted by Omar, Dubai on 4 June 2009 at 22:47 UAE time
I fully agree with property guru. Consultant, yes, Dubai is not doing well like before and has many changes but people are still alive. Mart, NO, i dont work in real estate + if you think Dubai is so bad, why are you still here my Friend.
Barack Obama is taking Dubai as an example of human prosperity so better to listen from such a smart man Harvard Graduate!
Posted by Omar, Dubai on 4 June 2009 at 22:41 UAE time
I want to ask you a question: Let's say you are from Pune, India and you work in Bombay for a big financial co and your CEO terminated you! What would you do? Go to Pune or a cheaper place. What about if you had gone to Canada and they terminated you. You would move to a cheaper place, look for a job, reduce your costs to the minimum and... Do the same in UAE my friend. Simple!I agree about visa facilities but let's face it, most good companies that have good relationship with its executives have not cancelled visas until they find another job! I dont think a company in DIFC that you worked for during several years would cancel your visa!!
Posted by Property Guru, Dubai, UAE on 4 June 2009 at 10:13 UAE time
I am in the property business in UAE for past 8 years and despite crash and huge losses by many including many, I have no compliants. I strongly believe people who invested in greed, they lost and who invested in Dubai are fine.
However, the u turn or nowhere turn in visa policy is more depressing than the losses. No we have no answer for any investor "Why dubai or UAE".
The basic reason for my buying property in Dubai in 2002 was not that I was a genious and I knew it will appreciate. I used to work in private sector and with uncertainty and sudden job loss the whole family life was disrupted. Because I decide to quit or loose my job the whole family has to pay the price by leaving the country, kids school etc.
I bought only because I saw it a method of having "shock absorber". Even if I went out of job for few months, I would have switched to my property visa that did not allow me to work. I was not complaining even if this did not allow me to work as when you have work you don't actually need this visa.
I guess the government is confused between VISA and citizenship. No expat property owner is looking forward to become citizen and get the previlages. If we can earn to invest in UAE, we can earn enough to look after our lives. We don't need free housing, pensions and all what citizens get.
All we need is a right of continuous stay for a reasonable period. 3 years renewal is good enough. So why can't you simply give a residence visa with "no civil rights". By civil rights I mean a UAE passport and what ever comes along with it. IF you find a person is having any criminal/ security and safety threat due to his actions in the country just don't renew or cancel his visa.
We have those rights in our own countries, why duplicate them?
Even god has given us life at lease with death as a certain cancellation time. Who wants to or can stay in this world forever anyways?
Posted by nn, Dubai, UAE on 3 June 2009 at 22:29 UAE time
It is clear that the govt. used the visa angle as a marketing gimmick to lure investors to UAE and fuel the construction boom. It opened a flood-gate caisson and by now revoking those promises they could not have chosen a worse time to do so, in the midst of the worst financial crisis in the past 80 yrs.
Posted by lakshman Dalpadado, Colombo, Sri Lanka on 3 June 2009 at 20:08 UAE time
Most readers are skirting the single most important reason for buying property in UAE- TAX FREE RESIDENCY and offshore banking!!. UAE has no income tax,capital gains tax, inheritance taxes or Death duties.
EU countries and UK ( Not USA) tax on residency which is defined as 183 days of residency in a country. If one stay less than 6 months a year in UK one is exempted from UK income taxes. Therefor if one stays more than 6 month in UAE one avoids paying UK( and EU) income tax, which is a hugh saving!!. Most Brits and EU nationals bought properties hoping that they they will get long term residency thus avoiding 30-50% income taxes back at home. But to get this tax relief they have to stay out of UK for over six months- and Dubai seems to be an excellent place to stay and soak up the sun knowing that you would be at least 30% richer!!
Posted by Alex, Dubai, UAE on 3 June 2009 at 20:07 UAE time
Those claiming that many foreign countries do not link visas to property ownership should remember the other side of the coin that
those same countries permit personal residency and EVEN citizenship, and do not link visas to driving, banking, tenancy etc etc.
The previous system of developers sponsoring visas was fine.
Posted by Mrs K, Dubai, UAE on 3 June 2009 at 16:33 UAE time
Two friends of mine living in the Emirates Hills and having rental income from their villas in Palm Jumeira and several apts in Dubai Marina and JLT are now selling these properties because of the hassle of these 6 mths visa. They have decided to move to Cyprus because the laws & regulations in regard to residency over there are more welcoming then in the UAE. Between them they own nearly AEd 100 million in properties and yet they feel rather unwelcome. They are currently sponsored by Emaar on a 3 years renewable visa. When they called Emaar about future extension they were told to call back in 2 mths time because they have stopped issuing or renewing visas. They thought Dubai will be their retirement home but obviously they are wrong. In Singapore if you invest in properties worth AED 4 million, you can apply for Permanent Residence and after few years, if you can proof that you are benefitting the country by your skills or investments, you can then apply for citizenship. In Malaysia if you invest, you can get residency based on "My 2nd Home" Here, you don't have to leave the country in order to renew your visa. My friends are not seeking permanent residency or citizenship, just a peaceful enjoyable life without the hassle.
Posted by Mpower, Dubai on 3 June 2009 at 15:58 UAE time
I have a 10 year visa for the USA, and i don't even own a flat, it was a 10 minute interview, no blood or stool test even. They have their process and criteria and i was an ideal candidate.
I was born in this country, i know U.A.E has no intention of giving citizenship and neither am i interested , all what investors, long term residents are asking is for is long term residency as they promised.
Here is a microcosmic view to the problem;
How would you like it, if i promised to keep you in the house and one fine morning after you have paid all the rent/fees/tax/service charge/visa charges i finally tell you listen " My mama feels that your a burden to the house, however she doesn't mind if you visit her ones in a while; if not sorry there is no refundable clause, take it or leave it."
If you guys haven't got it, what majority are complaining about is why promise residency when there was none in the first place; was it a marketing gimmick.