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Nakheel resales ban could be extended

The restrictions placed on buyer resales of Nakheel’s Trump International Hotel & Tower could be extended to future Nakheel launches, the Dubai developer revealed on Tuesday.

Investors at the recently-launched Trump International Hotel & Tower on Palm Jumeirah had to sign a purchase sale agreement banning them from on-selling the property for one year, a Nakheel spokesperson told Arabian Business.
“Nakheel introduced the restriction of re-sell for residential units purchased at which cannot be sold within the first year of purchase. Nakheel is committed in providing the market with a fair and transparent sales process, which maximise the buying opportunities for customers wishing to purchase a property from Nakheel,” the spokesperson said.

And the 12 month on-selling ban could be implemented for future project launches, the spokesperson said.

“A number of options will be considered for future sales launches. It is normal in a market such as Dubai’s for a company to have a combination of investors, both short and long term, as well as end users, and we work hard to create the right balance.”

The master developer has implemented a number of market sales methods, and these “represent a significant step towards ensuring the sales process is more accountable and measurable,” the spokesperson said.

Last month, Standard Chartered bank warned swift action was needed from the Dubai government to stop rampant speculative activity across the emirates’ property market.

Marios Maratheftis, regional head of research at Standard Chartered, told Arabian Business the government must act “as soon as possible”.

The bank's research revealed prices were being inflated by short-term buyers who were on-selling their properties, even before their first installments were due, with the sole intention of making a quick profit.

Maratheftis said the situation was so urgent, the government should impose a capital-gains tax of at least 50 percent on profits from properties purchased and sold within a 12 month period.

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