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29 March 2024

'Dubai working to shield property'

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By Parag Deulgaonkar

Dubai is working on introducing new regulations to safeguard its real estate market from any excessive price rise, a senior government official said.

“We didn’t create the bubble, it was a global crisis. The real estate challenge is over now,” Sheikh Ahmed bin Saeed Al Maktoum, Chairman of Dubai’s Supreme Fiscal Committee, told reporters.

He added: “We are working on our regulations. Sometimes I don’t see that (high property prices) are a good thing. We don’t want Dubai to become an expensive city.” No details of proposed regulations were given.

Industry participants, however, say property transfer fees are being increased with some adding that they will apply only to off-plan properties aimed at stopping flippers.

Click to read: Dubai can pay debt on time: Sheikh Ahmed

Dubai Land Department has yet to respond to queries from Emirates 24|7 on plans to increase transfer fees.

On Monday, the government issued Law No. 07 for 2013 regarding the Dubai Land Department’s objectives as the government entity responsible for registration, organisation and promotion of real-estate investment in Dubai.

The International Monetary Fund (IMF) said in July, Dubai might need to intervene in its property market to prevent another boom-and-bust cycle. Later in August, Standard Chartered said that despite prices soaring Dubai's property market is not heading towards another crash with market now more sustainable, being influenced by an improved economy rather than speculation that will not repeat the same boom-and-bust cycle of 2008.

The UAE Central Bank introduced caps on home finance to control and cool down the market last year, but postponed it. The new caps are expected to be announced by year-end. 

In an interview to Emarat Al Youm newspaper, Sultan bin Mijrin, Director General, Dubai Land Department, said they plan to introduce three main legislations in the first quarter of 2014 and a unified rent contract before end of the next year.