Thursday, August 28, 2008

Master developers deny residency visa guarantee clause in their contracts

Few master developers in Dubai have been accused of removing a particular clause from their contracts, which guarantees investors with residency visas, said a report.

Emaar Properties has sent notices to sub-developers to put on hold the processing of residency visas, until further notice, revealed a developer when speaking to the media.

"A particular clause in our previous contracts carried an assurance that master developers will guarantee residence visa. The clause is now removed," said one developer.

Foreigners are less likely to purchase properties in Dubai, if they are not automatically entitled to long-term residency rights. Expatriates in neighbouring countries like Pakistan, Iran and Lebanon who faced political instability had been lured to Dubai, mainly on the assumption that owning a property would entitle them to long-term visas, ING said.

Being the commercial hub of the Arab world, Dubai saw property boom since 2002 when the government had permitted foreigners to invest in Dubai properties.

Developer, Union Properties, for instance, said that it does not assure property buyers with residency visas, as it is the responsibility of the Department of Naturalization and Residency to grant visas.

The Chief Executive of Dubai Properties, Mohamed Binbrek, for instance, was quoted as saying that it "never assured any visa and was just acting as a facilitator".

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