Monday, June 6, 2011

Dubai plans to introduce a new residence visa system for property owners

Dubai plans to introduce a new residence visa system for property owners, reported 'Al Bayan' newspaper.

A government official was quoted as saying "authorities are discussing ways of granting owners of properties in the emirate, residence visas based on transparent rules and legislation".

The new rule is expected to boost the realty sector. However, realtors are wary about the costs involved. As some experts say the costs involved in setting up a company, including mainteance and ownership fees, to register a property under it could go up and this could put off buyers, reported 'Gulf News'.

Yet others believe the new rule would attract foreigners coming to the UAE for visas, thereby, boosting the emirate's realty sector.

The official said "the new mechanism suggests that property owners to establish a company in the free zone and then the company will own the property which will let the property owner who owns the company to obtain a residence permit on the basis of ownership of the company, not the property."

However, property owners must meet specific requirements to be able to establish the company. The official added that the residence visa will be valid as long as the ownership of the company is valid.

Some analysts say the law though will help the real estate market, it will not solve all of the real estate problems in Dubai.