Says move will drive future growth of property sector
Mohamed Alabbar, Chairman of Emaar Properties, the region's largest property developer, has said that the UAE federal government's decision of extending the validity of visas for foreign real estate investors in the country will boost investor confidence in the sector while driving future growth.
"The UAE Federal Cabinet decision to extend residence visa for real estate investors to three years will significantly enhance investor confidence and drive the growth of the country's property sector," Alabbar said in an emailed statement.
"The property sector is a key contributor to the non-oil GDP of the country, and is one of the largest employment providers apart from supporting several associated industries," Alabbar said in the statement.
While foreign investors who own properties worth more than Dh1 million in the UAE were earlier entitled to six-month, renewable visas, now they will be entitled to three-year multiple-entry visas, the UAE Cabinet said yesterday.
"The sector also plays in driving foreign direct investment to the country, and the Cabinet decision will enhance the appeal of the UAE as a preferred destination for safe investments in property," Alabbar further said.
"The Cabinet decision underlines the vision of His Highness Sheikh Khalifa Bin Zayed Al Nahyan and His Highness Sheikh Mohammed Bin Rashid Al Maktoum, UAE Vice President and Prime Minister and Ruler of Dubai, to further boost the competitiveness of the UAE," he concluded.
Citigroup said in a report that the plan to extend visas for foreign homebuyers could lift demand of Dubai's property market.
"This could significantly boost demand in the residential real estate sector, particularly in Dubai. The overall impact on the property market is likely to be somewhat muted by oversupply issues that are being exacerbated by the ongoing completion of new properties," Citigroup analyst Farouk Soussa said in a note.
© Emirates 24|7 2011
