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.
