Property in Dubai
Sharjah mulls granting permits to non-GCC nationals for owning of properties
Sharjah is considering the positives of permitting non-GCC nationals to own property in the emirate, it is said.
The Head of Research and Consultancy at CBRE (CB Richard Ellis), Matthew Green, said that the discussion to make freehold properties accessible to expatriates had cropped up in the past too, and it has probably emerged again due to the growing competition with Dubai, where the prices have dropped dramatically.
According to Green, freehold could only be a potential demand generator, but, it may not happen any time soon. This is because Sharjah is more inward looking than Dubai, and it is yet to be seen if Sharjah wants to encourage more foreigners.
The current laws regulating the property market in Sharjah, stipulates that ownership of real estate was granted to UAE nationals in 1972 and later extended to GCC nationals in 2005. But, it is not known if owning real estate implies freehold or leasehold.
However, during a dispute with buyers about Tameer’s Al Ameera Tower in 2006, it appears that Sharjah granted a 99-year leasehold to non-GCC nationals, which implies that freehold is only for GCC nationals.
According to Cluttons, leading real estate consultancy, the ownership is limited to GCC, but may be extended to other Arab nationals.
The Director of Cluttons, Sharjah, Lesley Preston, said that if ownership is open to all, including Indians and Westerners, there will surely be much demand.
The Asian nationals who have lived and worked in Sharjah for years, and have invested in their own businesses may welcome such an opportunity.
Lesley, however suggests that the new law should be clearly understood, before predicting its impact on the market.
Green advocates a unified ownership law for all emirates in the UAE. He suggests increase in duration of residency visas, and suggested a three years renewable visa, as against the present six months, for better demand.
The Assistant Manager for Residential Sales and Leasing at Better Homes, Paul Musson also said that freehold will make a world of difference to the Sharjah market, but a three-year minimum residency visa is appreciated.
Posted on 13/8/2010