Friday, September 27, 2013

Dubai to introduce new regulations to ‘safeguard’ its property market

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

According to the Chairman of Dubai’s Supreme Fiscal Committee, Sheikh Ahmed bin Saeed Al Maktoum, high property prices are not a good thing, and Dubai should not be an ‘expensive’ city. No details of proposed regulations were however, given.

The Law No.7 for 2013 regarding the Dubai Land Department’s objectives as government entity, responsible for registration, organization and promotion of real estate investment in Dubai, was issued early this week.

The International Monetary Fund (IMF) in July, said that Dubai may have to intervene in its real estate market to prevent another boom and bust cycle. Later in August, Standard Chartered said that despite hike in prices, the soaring property market of Dubai will not head towards another crash, as the market is now more sustainable, influenced by better economy, rather than speculation, and hence will not repeat the crisis of 2008.

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

The Dubai Land Department Director General, Sultan bin Mijrin, said that they paln to introduce three main legislations during first quarter of 2014, and a unified rent contract before next year-end.

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