The notification on multiple entry visa for property buyers in the UAE will instill confidence among real estate investors. This will also eliminate uncertainty over the residency visa issue for quite some time. Emirates Business spoke to a cross section of real estate functionaries to elicit their views:
Farhan Faraidooni, Executive Chairman, Sama Dubai: It is a smart move from the government. The residency visa resolution will boost confidence of investors in the real estate market, which will also boost the UAE's economy. We believe this announcement will calm the nerves of the investors as it brings in more clarity on the issue for those who have invested and those who are looking to invest. In fact, it will help everybody.
Chris O'Donnell, CEO of Nakheel: We welcome the notification as it clarifies all the uncertainties that prevailed in the market in terms of residency visas.
It is a stimulus to the property sector and one of the many measures that the government is planning to take for the revival of the property market.
Arif Alharmi, CEO, Amlak Finance: We view the new resolution that was taken by the Minister of Interior as another step in the right direction, in an effort to ensure the growth and prosperity of the national economy. By introducing the amended clauses pertaining to property owners and their families' eligibility for a six-month visa, the federal government has addressed a major concern that was raised in recent months.
I am confident that this and other measures taken and those that will be taken in the future will all lead to boosting the local economic environment and encourage investors in the real estate sector to benefit from the stability of the UAE market.
Wassim Saifi, CEO, Tamweel: The government is working on multiple issues to give boost to the realty sector, as the visa clarification was required to bring in more investor classes to the property market.
There are a lot of buyers from the Indian subcontinent, CIS countries and Iran who were waiting for specifics on the residency visa issue as it was one of the factors driving their investment decision. Overall, the visa resolution will help enhance market sentiments.
Omar Al Barguthi, DirectorGeneral of Ajman Real Estate Regulatory Agency: The decision is very healthy and it will definitely help, serve, and improve the market the situation for investors and developers. Considering the market conditions, I believe the span of up to six months residency is good.
Overall, it is good news for the industry.
Abid Junaid, Executive Director at ETA Star Properties: Any kind of residency visa resolution will boost the confidence of the real estate market. There was an air of uncertainty over the residency visa issue, which is now eliminated. The announcement has come as a big relief as it will reinforce stability of the property market.
The fees should not be more than what a company pays to hire an employee. It should be no more than what one is currently paying.
The visa issue will help a bit, but overall more measures such as availability of home mortgages will play an important part in revival of the industry.
Christina Cabading, President, BSEL Infrastructure Realty: Although it is a good step, the government has to take into consideration the fact that properties in the Northern Emirates are generally less than Dh1 million in value.
People buying in Ajman are end users and ones who were not able to afford properties in other emirates in the past two years. Moreover, it was the availability of residency visa in Ajman that drove investors here. I believe the government should take into consideration all these issues as it makes Northern Emirate less attractive for investment. On behalf of all the investors and stakeholders in Ajman, we urge the government to include all property owners. Creating a value-based visa permit will complicate the matters further.
K K Sharathchandra Bose, Commercial lawyer and Partner Dar Al Adalah Legal Consultants: Definitely the new visa rule will give confidence for the property buyers. This rule goes very well with the current visa rules.
Even if the visa duration is six months, it will help the property owners. The only issue is that the minimum investment value of Dh1 million as eligibility criteria will restrict the facility to the rich and affluent property owners in the UAE.
K P Viswanath, Partner, Horwath Mac, auditing firm: The move is a welcome step to improve sentinemnt of property owners in the UAE. However, the six-month period is too short to settle down for a new property owner.
Ajay Gupte, property investor: It is a welcome step, but six months would go just like that. The normal visa period is three years here and for property owners too the same rule should apply. The price limit on the property too will keep many property owners outside the purview of the new visa rule. With the steep fall in property price, studio and one-bedroom apartments are sold at Dh250,000. Thousands of property owners would not qualify for the scheme.
Akhilesh Bahl, Indian property investor: "If the UAE Government is consciously trying to introduce visa rules for property owners it will restore confidence. However, if a new property buyer coming to the UAE will ensure Dh10,000 fixed local income. In the case of people earning Dh10,000 they are already on an employment visa or business visa.
If the system is managed properly the property market will revive.
Hesham Bakry, institutional sales manager at Al Futtaim HC: The condition of minimum property value Dh1m and minimum fixed income of Dh10,000 will benefit only high networth individuals. What's the UAE Government is doing is to keep everything in place.
It's not meant to push up and pull down property stocks. I think global situation will impact more on property sector than the local factors. Unless we get back the global demand of 2005levels, there wouldn't be any boom in the market. So, I don't expect a strong session today for property stocks. 1,550 is the next support level for DFM general index, while 1,650-1,680 are the resistance levels."
Richard Coram, Managing Partner of Talent Brokers: I believe it is an interesting law and it does not affect me in the direct short term since I already have residency because of the business I have been running for years here in Dubai.
But should I retire and sell the business, do I have to leave every six months and find a place in a nearby GCC country once my re-entry visa is issued? So, it is about the comfort factor.
However, this is not a law of big difference compared to most countries in the world. If a UAE citizen owns a property in the United Kingdom, this does not mean he or she will automatically get a residency, so it is the same. I believe, people who live in foreign countries have to obey and respect the immigration and residency rules of that country and this is what we are doing.
Yahya Daiffallah, Managing Director of Sharjah-based Orient Oil: I believe it is a good law to manage the real estate sector in the UAE. It will not affect me since I have my residency for many years for my business.
But what about those people who want to own a property, will they be able to give the residency to their children as well and is there an age minimum to do that for the children?
People who find themselves getting into this business or style of life, will understand they have to make an exit every six months that may be inconvenient for some, but ok for others. But to my best knowledge, one of the very good things about this meausure is that it will limit the mess the speculators had been causing in the market and will force them to leave the market to its natural rhythm.
Sunny Varkey, Chairman, Gems Group: The move to introduce re-entry visa rule for property owners is a welcome step that will cheer the property investors here.
As a business group in a different business field, we welcome the decision.
It will definitely help revival of the UAE property market and help all the service sectors including education and healthcare."
Deepak Sharma, CEO, Dynasty Real Estate: This decision will reverse the downfall of property prices after the visa issue for property owners was discontinued. It was a big blow to the property market and escalated the downfall. While six months may not be enough, the rule will restore confidence in the market. Investors from the Indian Subcontinent will resume investing in UAE property market.
Manoj Thomas, Director Marketing, Delta Printing Press: Many investors booked houses here expecting residency visa. The new visa rule is a welcome step, but the frequent travel in and out will add to the expenses and the inconveniences may detract serious investors from the market.
Unhindered residence permit will encourage high-networth non-resident Indians and professionals to invest in the UAE property market.
These investors are not speculators. http://www.soledubai.com/news.aspx?id=365
Farhan Faraidooni, Executive Chairman, Sama Dubai: It is a smart move from the government. The residency visa resolution will boost confidence of investors in the real estate market, which will also boost the UAE's economy. We believe this announcement will calm the nerves of the investors as it brings in more clarity on the issue for those who have invested and those who are looking to invest. In fact, it will help everybody.
Chris O'Donnell, CEO of Nakheel: We welcome the notification as it clarifies all the uncertainties that prevailed in the market in terms of residency visas.
It is a stimulus to the property sector and one of the many measures that the government is planning to take for the revival of the property market.
Arif Alharmi, CEO, Amlak Finance: We view the new resolution that was taken by the Minister of Interior as another step in the right direction, in an effort to ensure the growth and prosperity of the national economy. By introducing the amended clauses pertaining to property owners and their families' eligibility for a six-month visa, the federal government has addressed a major concern that was raised in recent months.
I am confident that this and other measures taken and those that will be taken in the future will all lead to boosting the local economic environment and encourage investors in the real estate sector to benefit from the stability of the UAE market.
Wassim Saifi, CEO, Tamweel: The government is working on multiple issues to give boost to the realty sector, as the visa clarification was required to bring in more investor classes to the property market.
There are a lot of buyers from the Indian subcontinent, CIS countries and Iran who were waiting for specifics on the residency visa issue as it was one of the factors driving their investment decision. Overall, the visa resolution will help enhance market sentiments.
Omar Al Barguthi, DirectorGeneral of Ajman Real Estate Regulatory Agency: The decision is very healthy and it will definitely help, serve, and improve the market the situation for investors and developers. Considering the market conditions, I believe the span of up to six months residency is good.
Overall, it is good news for the industry.
Abid Junaid, Executive Director at ETA Star Properties: Any kind of residency visa resolution will boost the confidence of the real estate market. There was an air of uncertainty over the residency visa issue, which is now eliminated. The announcement has come as a big relief as it will reinforce stability of the property market.
The fees should not be more than what a company pays to hire an employee. It should be no more than what one is currently paying.
The visa issue will help a bit, but overall more measures such as availability of home mortgages will play an important part in revival of the industry.
Christina Cabading, President, BSEL Infrastructure Realty: Although it is a good step, the government has to take into consideration the fact that properties in the Northern Emirates are generally less than Dh1 million in value.
People buying in Ajman are end users and ones who were not able to afford properties in other emirates in the past two years. Moreover, it was the availability of residency visa in Ajman that drove investors here. I believe the government should take into consideration all these issues as it makes Northern Emirate less attractive for investment. On behalf of all the investors and stakeholders in Ajman, we urge the government to include all property owners. Creating a value-based visa permit will complicate the matters further.
K K Sharathchandra Bose, Commercial lawyer and Partner Dar Al Adalah Legal Consultants: Definitely the new visa rule will give confidence for the property buyers. This rule goes very well with the current visa rules.
Even if the visa duration is six months, it will help the property owners. The only issue is that the minimum investment value of Dh1 million as eligibility criteria will restrict the facility to the rich and affluent property owners in the UAE.
K P Viswanath, Partner, Horwath Mac, auditing firm: The move is a welcome step to improve sentinemnt of property owners in the UAE. However, the six-month period is too short to settle down for a new property owner.
Ajay Gupte, property investor: It is a welcome step, but six months would go just like that. The normal visa period is three years here and for property owners too the same rule should apply. The price limit on the property too will keep many property owners outside the purview of the new visa rule. With the steep fall in property price, studio and one-bedroom apartments are sold at Dh250,000. Thousands of property owners would not qualify for the scheme.
Akhilesh Bahl, Indian property investor: "If the UAE Government is consciously trying to introduce visa rules for property owners it will restore confidence. However, if a new property buyer coming to the UAE will ensure Dh10,000 fixed local income. In the case of people earning Dh10,000 they are already on an employment visa or business visa.
If the system is managed properly the property market will revive.
Hesham Bakry, institutional sales manager at Al Futtaim HC: The condition of minimum property value Dh1m and minimum fixed income of Dh10,000 will benefit only high networth individuals. What's the UAE Government is doing is to keep everything in place.
It's not meant to push up and pull down property stocks. I think global situation will impact more on property sector than the local factors. Unless we get back the global demand of 2005levels, there wouldn't be any boom in the market. So, I don't expect a strong session today for property stocks. 1,550 is the next support level for DFM general index, while 1,650-1,680 are the resistance levels."
Richard Coram, Managing Partner of Talent Brokers: I believe it is an interesting law and it does not affect me in the direct short term since I already have residency because of the business I have been running for years here in Dubai.
But should I retire and sell the business, do I have to leave every six months and find a place in a nearby GCC country once my re-entry visa is issued? So, it is about the comfort factor.
However, this is not a law of big difference compared to most countries in the world. If a UAE citizen owns a property in the United Kingdom, this does not mean he or she will automatically get a residency, so it is the same. I believe, people who live in foreign countries have to obey and respect the immigration and residency rules of that country and this is what we are doing.
Yahya Daiffallah, Managing Director of Sharjah-based Orient Oil: I believe it is a good law to manage the real estate sector in the UAE. It will not affect me since I have my residency for many years for my business.
But what about those people who want to own a property, will they be able to give the residency to their children as well and is there an age minimum to do that for the children?
People who find themselves getting into this business or style of life, will understand they have to make an exit every six months that may be inconvenient for some, but ok for others. But to my best knowledge, one of the very good things about this meausure is that it will limit the mess the speculators had been causing in the market and will force them to leave the market to its natural rhythm.
Sunny Varkey, Chairman, Gems Group: The move to introduce re-entry visa rule for property owners is a welcome step that will cheer the property investors here.
As a business group in a different business field, we welcome the decision.
It will definitely help revival of the UAE property market and help all the service sectors including education and healthcare."
Deepak Sharma, CEO, Dynasty Real Estate: This decision will reverse the downfall of property prices after the visa issue for property owners was discontinued. It was a big blow to the property market and escalated the downfall. While six months may not be enough, the rule will restore confidence in the market. Investors from the Indian Subcontinent will resume investing in UAE property market.
Manoj Thomas, Director Marketing, Delta Printing Press: Many investors booked houses here expecting residency visa. The new visa rule is a welcome step, but the frequent travel in and out will add to the expenses and the inconveniences may detract serious investors from the market.
Unhindered residence permit will encourage high-networth non-resident Indians and professionals to invest in the UAE property market.
These investors are not speculators. http://www.soledubai.com/news.aspx?id=365
Dubai is not trying to be like London it has taken inspiration from across the globe and most of the engineers, projects managers, architects, quantity surveyors, accountants, and designers are from the UK, US, Europe, Australia, Japan, Singapore etc. That is where dubai has had it's influence regarding some genre and styling! I believe it to be very unique and very different from any other city in the world. It can never be like London, Hong Kong or Manhattan which many dvds and brochures have discribed the finished product to resemble.
ReplyDeleteUnfortunately for the misled and uninformed they were caught up in the bubble which has violently burst, reflecting an image synonymous with most major cities all over the globe. Pictures of people losing jobs, going back to basics, losing the homes and livelihoods. Companies going bust and many people going to prison for acts of desperation or irregularities being uncovered by the storm.
The truth is Dubai has done well to get this far and if it is to recover and grow from here on they really need to change their policies regarding, confidence, security, transparency and lack of informed government officials with a standard law and understanding of the same law. What you will find is a different interpretation of the same law with each different official, followed by a different implimentation and execution of the law. This then causing confusion and lack of confidence in Rera, Land Department, Rental Committee, Property Dispute Court and the Local Law Enforcement (police). My company was swindled out of millions by a rogue developer and nothing was done by any of the above mentioned authorities despite clear evidence of misappropriated funds in the developers case. The CEO is finally behind bars however if the correct course of action had been followed 14 months earlier I would have stood a chance of getting my funds back. However we were passed around from department to department without the authorities having any idea as to what their responsibilities were or their colleagues responsibilities.
This matter was even brought before the CEO of Rera who vowed to resolve the issue if a written request was submitted. Eagerly we submitted the written request the same morning of January 15 and am currently still awaiting a written response from Rera. If this is the treatment being received from the Real Estate Regulatory Agency, The Land Department and the Police. How can we expect the developers to be more cooporative regarding investments made. Despite following up the issue with the Authorities nothing has been done and a narration of how they have hundreds of similar cases is brought up by each different official we face. Even after months of pushing the very individuals (government officials) responsible for handling the issues; they are surprised when I confirm that the matter is not yet resolved! How can you be surprised, when you're responsible for resolving the matter and you have failed to enforce the very law you implimented.
Dubai is an amazing place and if they are to see the good times again they really need to revise Customer Care, Relations and adopt a sense of urgency.
I love Dubai
The activity I have been experiencing in the Market is a sign of more good things to come! As more people relocate to Dubai, the signs are there for all to see that it's not all lost and there are people out there who still have cofidence in this wonderful city!
ReplyDeleteWatch this space as I will be bringing you unedited unbiased news!