Dubai expands residency visa for property investors

Published 29th Jun 2011

The UAE has extended its residency visa scheme for foreigners investing in the national property market, with home buyers now granted three years to live in the country rather than the previous six months.

The move comes after the scheme was controversially shortened in 2009, with buyers originally able to gain five years' residency in the Emirates if they purchased a property.The tightening of visa restrictions from this initial five year period to six months is thought to have contributed to the massive downswing in demand that occurred in the UAE market, especially Dubai, in the wake of the global recession.

UAE Prime Minister Sheikh Mohamed bin Rashid al Maktoum came to the decision yesterday after meeting with his cabinet in the Presidential Palace. The state-run Emirates News Agency said the lengthening of the investor's visa was likely to "enhance the attractiveness of the real estate sector".

"This could significantly boost demand in the residential sector, particularly in Dubai", said Citigroup analyst Farouk Soussa. The Emirate city has struggled with an oversupply in its real estate market for the last couple of years, so for local development and construction firms, as well as agents and existing owners, the news is certainly welcome. The prospect of a property recovery has already been felt in the stock market this morning - Bloomberg reports that the Dubai Financial Market Real Estate Index, which includes the share prices of five developers, had risen 1.4 per cent by 11:34am local time.

Source: ' TMC '

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