Property Law to Boost Investors’ Confidence

Property developers and investors have widely welcomed the new law that will allow six-month visa to property buyers, as it will create much needed stability in a market that is undergoing a major
price correction. Syed Hasan Mujtaba, a property investor said that the law would help the real estate market stabilise a bit, as confusion on the residency visa has been resolved. He said that majority of the investors wanted to have a second home outside the country and did not work here and needed a valid visa. “They had to arrange visas for their visit to the country in case they had an appointment with their bankers, tenants or property developers,”
Mujtaba said. He said that with property prices down 50-60 per cent, the law will send a positive signal to property buyers encouraging them to return to a market which still has lot to offer. Similarly, Shafqat Ali Malik Chief Financial Officer of Aldar Properties said the law will encourage the foreign investors to buy properties in
the country. However, Christina Cabading, President, BSEL Infrastructure Realty FZE, said further reforms were needed. “Most properties in Ajman are sub-1 million in value, and these investors would like to see similar rights for their properties as well.

Creating a value-based visa permit will complicate the matters further,” Cabading said. Fahad Sattar Dero, Chief Executive Officer, Sweet Homes Holdings said the visa could not be effective for middle and low income home owners who could not afford multiple entry. “The reason is that the value of most of the properties in Ajman range from Dh200,000 to less than one million. We therefore request the government to reconsider the limit of value of the property and the income of the
property owner.” Jumeirah Beach Residence property owner Suhail Shaikh said a longer visa would be more attractive for investors. “The six months multiple entry visa directly through DNRD is a welcome move, however, a three-year multiple entry visa would have been ideal. The duration of the multiple entry visas based on the value of the property could have been a better middle ground to accommodate both interests,” Shaikh said. Mohammed Ali Yasin chief executive officer of Shuaa Securities in Abu Dhabi said that property visa was an important part of the equation for expatriates. But the most important thing is the resumption of lending to the real estate sector that has been stopped. “Lending can boost the sale of properties which can have huge impact on the depressed market,” he said.