Dubai Passes Property Law To Curb Speculation

One of the biggest worries to come about from Dubai’s booming real estate market these past 5 years or so has been the problem of speculation in the property market. Real estate prices here have reached record highs after groundbreaking projects such as the Palm Jumeirah and the Burj Dubai and other freehold real estate projects have set the market alight. However many investors chose to take advantage of off-plan freehold property laws where one could purchases and the resell a property with only having ever put down a deposit worth a fraction of the properties value. This therefore allowed buyers to make good money very quickly without ever having to invest much capital into the deal. However the results of such actions have lead many to believe that the market was becoming overheated as a result of such high levels of speculative buying. So, you might ask, what’s to be done? Are investors still flipping to sell Dubai property?

Well changes have already been introduced to reduce the effects of speculative buying, with developers Emaar and Nakheel the first to move. They introduced new regulations to ensure that buyers of off plan property were obliged to hold onto their properties for a set time before being able to resell. And now the Dubai Real Estate Regulatory Authority (RERA) has this week also introduced a new law much to the same effect. In an attempt to curb properties prices and enhance transparency of real estate deals, all off-plan properties must be registered with the land department before being able to be sold on. According to RERA, this is the first law in what will be a step by step process to further enhance the Dubai property market.

The introduction of this newest law comes hot on the introduction of new mortgage regulations, which again build upon the new drive to further regulate this booming gulf real estate sector. So for buyers this is all good news. Increased transparency in real estate dealing will be much welcomed, but the biggest benefit of the news laws will be the cooling of the property market and therefore a more positive outlook for the real estate sector in the long term. 

If you are interested to buy or sell Dubai property we can be contacted on the link below.
 

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