The federal government of the United Arab Emirates has extended real estate investor visas from six months to three years. The Federal Cabinet adopted that decision on Tuesday at a meeting in Abu Dhabi. "The government took a raft of measures as part of its efforts to underpin economic growth within its strategic plan 2011-2013, including extension of visa for Real Estate Companies in Dubai to three years instead of six months," Wam said. People familiar with the matter told Emirates 24/7 that one and a half months ago, the debate on the extension of the property visa was held and a number of issues were discussed. The source added that nothing was decided to reduce the valuation clause of the property, but the most likely number of visas to be issued will be according to the size of the apartment/property.
Analysts said the decision would boost the country's property sector as well as affect the overall economy's growth. "A long-term property visa was a long-standing demand of many property investors since the concept of freehold took hold in the United Arab Emirates," said Abu Khaled, a property consultant. "I know investors from the Indian Subcontinent and from Iran were particularly anxious about a long-term property visa. This move by the Federal Cabinet will re-open the property sector - not just in Dubai - but all across the UAE and we shall soon see demand returning and places such as Ajman and Umm Al Quwain become active again.
A stock market analyst predicted a rise in stocks related to property. Unfortunately, now the market is closed. Otherwise we would have seen a spike in property shares already. If the share opens higher tomorrow morning and goes up through the day, I won't be surprised. Toward the end of the trading session, however, there could be some profit-taking.
I invested in three Dubai properties and one in Ajman. I've got enough funds to look after my living expenses. I like Dubai, and I wanted to make my home like this. But because I am an Indian passport holder, I needed a residency visa. To get a residence visa, I started a business, but it was a hassle. If I can get a residence visa for three years through my estate, then why not? It will be cheaper than the cost of setting up a business and much less hassle,' said an investor, Rajiv Singh. Another investor, Magda H, said she was impressed by the news. This was a key factor in our UAE property purchase. For our stay in the country, we don't want to be dependent on a fickle company owner. Now that visa is available, I'm sure we're all going to benefit from it,"This has been a key factor in our purchase of property in the UAE. We do not want to be dependent on a fickle company owner for our stay in the country. Now that such as visa is available, I am sure we will all benefit from it,"Now that visa is available, I'm sure we're all going to benefit from it. She hoped that full facility details would soon be made available so that investors could plan accordingly.
"This is something beyond the market's expectation. The decision is very forward looking and will help boost the market, not just in Dubai, but across the emirate. It will certainly have a very positive impact and help property prices recover over the time."
"This will help create the right environment for the Dubai Investment Real Estate and an attraction for the investors, I think it was a wise decision."
"The real estate market was facing a lot of challenges and this decision would answer some of the questions.The three year visa would serve as an incentive for foreigners to buy properties in UAE and this would go a long in restoring investor's confidence in UAE leadership."