Dubai's property prices are expected to climb up to 40% more than last year, a top official said, as the emirate implements strict new rules to curb speculation.
In an interview with Bloomberg, Land Department General Director Sultan Bin Mejren said home prices may rise 35-40%, but the authority is planning on introducing new regulations later this year to limit the frequent buying and selling of off-plan projects, commonly known as 'flipping'.
“Transactions on off-plan properties are a little dangerous,” he told Bloomberg. “We are now studying them and looking at ways to ensure that they don’t hurt the market.”
He added the review would be completed by the first quarter and the real estate authority aims to implement the regulations by mid-year.
This is the latest in a series of regulations aiming to curb speculation that led to the fall of the market in 2008.
Last year, regulators doubled the transaction fee on new properties from 2 to 4% to limit the frequent buying and selling of properties. The Cental Bank also introduced a stricter mortgage cap, increasing the downpayment on properties made by UAE and foreign buyers.
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