Dubai Mulls New Rules to Limit Off-Plan Property Sales, IMF Says - Bloomberg

Dubai Mulls New Rules to Limit Off-Plan Property Sales, IMF Says - Bloomberg:



"Dubai is considering regulations to limit the sale of properties before they are built to address one of the main causes of the 2008 property crash, according to the International Monetary Fund.



“The Dubai authorities are completing a review of the off-plan transaction market, and will issue additional regulations, which could slow down real-estate sector price growth, in the coming months,” the IMF said its Article IV consultation dated July 3.



Dubai’s recovery from the verge of default in 2009 fueled a 35 percent-increase in real estate prices last year, according to broker Knight Frank LLP, sparking concerns the emirate is at risk of a bubble in the real-estate market. That prompted authorities to double property transaction fees to 4 percent last year and the United Arab Emirates’ central bank to impose mortgage caps."



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