Property & Investment in Dubai: Your questions about the market

[MarkWass]

This Dh1m rule - Is it one property that has to be worth at least that? I mean what if someone owned a few properties but each one was individually was valued at under DH1m?

[agod]

Al Menhali added: "The aim of this law is not full residence in the UAE but to give more flexibility and make it easy for the investors to stay and move in and out of the UAE to manage and watch over their properties."


Oh dear, I hope Al Menhali is wrong, as this is moving the goal posts again, there are plenty of Million Dirham plus owners, who want a 3 year visa, so they can come and live in their properties here, get a bank account, sign up with DU, and DEWA, buy a car, get a Licence, and spend loads of money, in the Emirates.

If you want to come and go, and look after your properties, you can do all that on a 30 day tourist visa, with a 30 day extension, and a trip to Oman if you fancy, gets you 90 days.

Al.

[MarkWass]

Originally Posted by MarkWass

This Dh1m rule - Is it one property that has to be worth at least that? I mean what if someone owned a few properties but each one was individually was valued at under DH1m?

Just seen the answer to my own earlier question..

http://www.zawya.com/story.cfm/sidGN_04072011_050747/New_residence_visas_will_increase_flexibility_for_real_estate_investors


‘Al Menhali stressed that the Dh1 million value should be for a single property.
“If the investor owns more than one property whose combined worth is Dh1 million, he will not be eligible for a visa.” ’


So it seems that if an investor owns / buys 20 apartments worth / costing Dh900k each, then he/she is not eligible. But another investor who has one at Dh1m, no probs..

[Richard Head]

"here, you're as dumb as dirt, please have a position of authority"

[Hanna]

Hi


Just as predicted property price must be over a Dhms1 million that
should take care of about 70% or more of Apts not making the mark.
Most of them have already dropped 60%

As I said they are going to be very very very selective who they are going to
give a Visa to.If they think this new deal will have the punters flocking
back they must be kidding.Another opportunity down the tubes they really
know how to mess things up in Dubai.

What is the point ! please read below 'Majority of investors'






Much-needed boost for UAE property sector
Three-year visa will encourage buying activity and clear developers' inventories


The latest decision to extend the visa period to three years comes after a lot of thought and meetings with business communities seeking the extended validity of the property-linked visa although the minimum Dh1 million investment will leave the majority of investors out of the visa eligibility category — especially with the falling valuation of properties.
The decision to grant real estate investors a three-year visa could not have come at a better time; markets are showing signs of growth after a nearly three-year lull. This is definitely going to give the property sector a much-needed boost.

The confidence this decision has inspired in the markets is reflected in the gains by real estate stocks. Property developers and brokers now have something to look forward to. The move also reflects the UAE government's pragmatic and pro-business outlook and its determination to support businesses, although visas and ownership of property are two different things and most countries do not link the two.

At the beginning of the property boom, a number of developers had promised residence visas to investors without the legal backing of the federal government that issues the visas. Then in 2008, the government announced a limited-stay visa scheme for property owners that allowed them to stay for a period of six months — enough for them to service, rent, buy or sell property. That decision, along with the property crash in September 2008 had a catastrophic impact on the market.



The latest decision to extend the visa period to three years comes after a lot of thought and meetings with business communities seeking the extended validity of the property-linked visa although the minimum Dh1 million investment will leave the 'majority of investors' out of the visa eligibility category — especially with the falling valuation of properties




However, this decision fulfils a long-standing desire of UAE real estate developers, some of whom are stuck with a sizeable number of unsold properties. This will also encourage investors and end-users to return to the real estate market.
With investor sentiment growing following the announcement, buying activity is expected to pick up in the coming months.

[agod]

Allow multi unit owners a visa, if it adds up to over a Million.

units under a million will be unsaleable, if you are buying for a Visa, so maybe it will push up the price of those at 950.000 to a Million to get the visa, thoe at the 400,000 mark will remain stagnant.

Al.

[FWIW]

Originally Posted by MarkWass

Just seen the answer to my own earlier question..

http://www.zawya.com/story.cfm/sidGN_04072011_050747/New_residence_visas_will_increase_flexibility_for_real_estate_investors


‘Al Menhali stressed that the Dh1 million value should be for a single property.
“If the investor owns more than one property whose combined worth is Dh1 million, he will not be eligible for a visa.” ’


So it seems that if an investor owns / buys 20 apartments worth / costing Dh900k each, then he/she is not eligible. But another investor who has one at Dh1m, no probs..

These guys always never fail to amuse me with their well thought through decisions!

[noir-dresses]

They should be happy any one would invest even 150,000 AED for a studio after all the slack investors have gotten.

Places like Ajman will remain ghost towns for a long time to come with these really well thought out decisions.

If a person buys a holiday home it doesn't mean they want to reside, or be a UAE citizen. HELLO, IS ANY BODY THERE ????????

Most holiday home buyers bought a piece of property in Dubai to relax, and not have head aches, well the opposite is happening.

Every body, and their mother are waiting for prices to rise, so they can sell, and GTFO of that market, and now they kill the new batch of investors ( suckers ) from also coming.

[noir-dresses]

http://www.youtube.com/watch?v=_4BkXhRx324

This is what the whole property, and visa policy reminds me of in Dubai.

Enough games, we are tired of them.

[smussuw]

All this ranting is based on the assumption that majority of buyers are not living here already ......

[Imre]

Please vote:

supertalls world cup • game 61 • round 5

Burj Khalifa vs Chrysler Building

http://xl.skyscrapercity.com/?page=o...erday=20110704

[Porcello]

Originally Posted by smussuw

All this ranting is based on the assumption that majority of buyers are not living here already ......

It's a good assumption, I would say, at least in JLT. In many towers here the percentage of resident owners is around 30%.

[MarkWass]

Originally Posted by smussuw

All this ranting is based on the assumption that majority of buyers are not living here already ......

I would be interested to see a some data that shows the % of all residential property (existing & off plan) that is owned by foreign nationals vs those that do not need a visa to live in Dubai. Would also be interesting to see data showing the future / forecast total real estate supply and what level of investment from future foreign buyers (needing visas) will be required.

Presumably the DLD and govt have these figures...

I also agree with you ND that it will be important for the authorities not to focus too heavily only on certain prime areas. The effects of 'ghettoization', which could be a resulting effect in certain neglected areas, in any city can be very long lasting / detrimental to an entire city, can restrict overall development potential and would have thought something they would want to avoid....

[smussuw]

Originally Posted by MarkWass

I would be interested to see a some data that shows the % of all residential property (existing & off plan) that is owned by foreign nationals vs those that do not need a visa to live in Dubai. Would also be interesting to see data showing the future / forecast total real estate supply and what level of investment from future foreign buyers (needing visas) will be required..

I was referring to foreigners who are already living here under a working visa in comparison to those who don't ....

[Richard Head]

Originally Posted by smussuw

All this ranting is based on the assumption that majority of buyers are not living here already ......

Ummmm..no it isn't. If they form only 10% of the total owner population, it has massive significance to the market and the UAE economy as a whole. Your totally dreamt up assumption is way off the mark.

[Richard Head]

Originally Posted by Porcello

It's a good assumption, I would say, at least in JLT. In many towers here the percentage of resident owners is around 30%.

I think this is also a false assumption. Quite possibly of the people that live there, only 30% are owners, but that is something different altogether. Another 30% of those properties occupied by tenants could be owned by Dubai residents living in one of several Dubai properties they own. There are plenty of multiple unit owners here.

[MarkWass]

The govt will have all the accurate existing and more importantly predicted forecast data. And one can only assume that they are using that data when determining their visa policies?

[noir-dresses]

Just like the government had data on developers selling real estate like hot cakes guaranteeing sponsorship for residency visas.

It can only be one of two things, they are dumb, or we got scammed, pick what ever works for you cause neither works for me.

It's like some one putting a nice meal in front of you while your hungry, but the catch is you can't eat it.

[Philippa C]

Originally Posted by agod

What they need is a Retirement Visa attached to this Residential Property Owning One. for the over 60's, no conditions, except a yearly interview to make sure you still own a place, have Medical Cover, and any source of worlwide income is taken into account, and you are still breathing would help.

Al.

Al, why don't you write with this idea to the relevant authorities and/or get in touch with some journalists, those at The National seem pretty good. The authorities must be listening even a little to have reverted to the 3 year visa. Having a lot of retirees here would also encourage their younger family members to visit which is good for the economy.

Getting people to leave for 3 months at Eid or Christmas is almost inviting them to spend more outside the country. It's at holiday time that people spend most.

I think the minimum value of 1 mil AED for a property is reasonable. They should also apply the one family one villa/apartment rule. It's in the interests of all UAE residents that the calibre of resident is controlled so as to maintain the high living standards and relative safety that we currently enjoy and which make the UAE, and Dubai in particular, an attractive place to live. Can you imagine if resident visas were available on the purchase of any property - you'd have huge families clubbing together to buy a cheap studio and then all living it based on one person's visa and sponsorship of the others. People are always after an angle so the authorities are right to be vigilant and be careful about who is allowed to live here.

[Richard Head]

Originally Posted by MarkWass

The govt will have all the accurate existing and more importantly predicted forecast data. And one can only assume that they are using that data when determining their visa policies?

I really have no idea why you would think they would get some decent analysis done, and then apply logical policies based on that data. Honestly, there is absolutely no prior history of that happening. They shoot from the hip with minimal real data, based on individual honour, pride, egos, tribalism etc. etc.

Anything but what you are "assuming" will actually happen.