New Visa Rules for Property Owners in Dubai Aren’t Good Enough

Dubai has issued new rules related to the issuance of visas to homeowners in the emirate, but many feel that they are not flexible enough, they are too restrictive and they are not good enough to kick start the real estate market’s positive movement once again.

The rules relate to which homeowners can have multiple entry visas into the emirate based on the fact that they have freehold rights to their property.  They have been long awaited and certainly expected, but most homeowners, property developers and real estate agents all agree that the rules fall very short of what was expected.

The government in Dubai has taken its time to offer this solution to property buyers, and in the meantime, during Dubai’s boom years, most people bought homes confident that their permission to reside in the emirate was assured.  Now that the visa rules have been issued, most are saying that they fall very far short of what was expected, others are saying that quite simply, the new visa rules for property owners in Dubai aren’t good enough.

If you are the proud owner of a completed property in Dubai that’s worth at least 1 million dirham, (that’s about GBP 180,250 in today’s money), and you’re in receipt of a monthly income of at lease 10,000 dirham, (about GBP 1,800), the home is suitable for a family and you have had the home transferred into your name, then you are eligible for the new visa.

The new visa allows such homeowners the right of multiple entry into Dubai for a period not exceeding 6 months, at which time the individual has to leave for their own home nation or other qualifying nation.  It is then assumed that they can return to Dubai after spending a qualifying period of time outside the emirate…although we’re not clear on this fact.

It’s believed that the government was put under pressure to bring this ruling forward, having procrastinated about it for years.  The basic visa rules were outlined when it was decreed that foreigners would have the right to own freehold real estate in certain parts of the emirate, but it has taken many years for the rules to be finalised.  This ‘reluctance’ on the part of authorities has certainly damaged the market, a market that according to Colliers International has seen a fall in property prices of 41% during the first three months of 2009.  And all industry sources agree that this latest attempt to inject some confidence back into Dubai, so that it is viewed as an emirate that honours its promises, is not enough to kick start a turn around in Dubai’s property fortunes.

Finally, if you’re contemplating moving to Dubai, perhaps you might like to read the story about the tragic mother who lost her baby at 9 months when she was involved in a car accident in the emirate.  The woman in question has been charged with the manslaughter of her unborn child – so it is not enough that she has to live with the devastating loss of her baby and the lack of understanding that society has for such women in general, but she is now ‘guilty’ of killing that child in the eyes of the Dubai authorities.  Think carefully about whether you can live, work or invest in a society that treats people like this before you make the commitment to make Dubai home.