Monday, July 04, 2011

UAE developers seek relaxation in property value criteria

The developers in Northern Emirates of UAE are hoping that the Federal Government will ease the property value criteria for issuance of three-year real estate investor visa, set at minimum of Dh.1million during May 2009.

The Executive Director at Rakeen, Wahid Attalla, said that the decision to extend real estate visa to three years from the current six months is good news and will help the market in moving ahead. But, he added that some relaxation in regulations pertaining to the property valuation criteria is expected.

The Federal Government, last week extended visa for real estate investors from six months to three years.

The Ajman Real Estate Regulatory Agency (ARRA) Director General, Omar Al Barguthi, hopes that a committee would soon be established to implement the decision of changeover in the six month visa regulation, and the committee may look into the matter of lowering the property value criteria.

Al Barguthi welcomed the good news and pointed out that this indicates the seriousness of the decision makers about the real estate sector and their interest in safeguarding investors.

ARRA had submitted a proposal to the Federal Authority in 2009, seeking an overhaul of current real estate visa regulations, calling for removal of property values, fixed incomes or compulsory exits as criteria for granting/renewing six month residency visas.

The agency, in its submission, mentioned that it should be possible to renew visas every six months until three years, without the need for having to leave the country.

As for minimum property value as the visa criteria, it stated that the value of property in the Northern Emirates does not exceed half the value of property in other emirates, and this will cater only to certain investors.

The HPL Yamalova & Plewka Managing Partner, Ludmila Yamalova, mentioned that the government's initiative to extend property visa to three years is a ‘great development’, but the valuation criteria should be removed so that it can encourage young professionals to invest in properties within the UAE.

She emphasized that there is plenty of inventory in the market, and several of these will be sold if the threshold of Dh.1mn is scrapped. Also, the visa restriction should be on the basis of size of property than on the investment made.

However, the three-year visa announced by the Federal Government will make life easier for those who opt for it, as it is going to open up several services such as personal loans, applying for driving license and school admissions to the visa holders.

1 comment:

Calgary Real Estate said...

What happens after the three years?