A key Dubai figure says the emirate has put enough measures in place to protect the real estate market from any fresh crisis – despite warnings from the International Monetary Fund (IMF) about property speculation.
Sheikh Ahmed bin Saeed Al Maktoum, Chairman of Dubai Supreme Fiscal Committee, told Emirates 24/7: “The protection of the property market is guaranteed by a number of laws and measures and the economy of Dubai is robust and the signs are reassuring and very good.”
The director of the Middle East and Central Asia department of the IMF, Masood Ahmed, had warned that Dubai needed to consider “stronger measures”, especially against “quick turnarounds” or property flipping.
Hong Kong and Singapore introduced higher fees on short turnaround real estate sales to discourage flipping.
The Dubai property bubble burst in 2009 following the global economic crisis, with prices slumping up to 60 percent. But in the last year, they have risen 45 percent on average, according to propertyfinder.ae.
In the last year –
- The Central Bank issued mortgage caps for nationals and expats
- The Dubai Land Department doubled property registration fees to four percent
- Aldar Properties and Emaar stopped investors from reselling until they had paid off 40 and 50 percent of the purchase price respectively
- Emaar stopped real estate agents from selling any off-plan property until handover
- The International Institute of Finance has also warned the UAE to be vigilant about soaring real estate prices in Dubai