Official welcomes moves by the central bank to dampen what can become a speculative increase
Dubai should consider stronger measures to dampen
what could be speculative real estate transactions in the emirate, a senior
International Monetary Fund (IMF) official said on Tuesday, in the global
body's latest warning of a potential property bubble.
Growth in the Gulf emirate, the region's trade and
business hub, picked up strongly last year, buoyed by the prospect of
government real estate projects worth tens of billions of dollars following a
property market crash in 2008-2010.
Masood Ahmed, director of the IMF's Middle East and
Central Asia department, said the Fund had welcomed moves taken by Dubai's
government and central bank last autumn to cool what could become a
"speculative increase" but said more was needed.
Dubai, one of seven United Arab Emirates, announced
last September it would double a registration fee charged on real estate
transactions to 4 percent to prevent excessive speculation.
"Our own view is that these measures are good
... but it's time to consider stronger measures," Ahmed said in a
presentation on the regional economic outlook.
Dubai's economy is expected to grow by around 5
percent this year, a similar pace to 2013, the head of its statistics office
said on Monday.
Dubai accounts for a quarter of the total output of
the UAE's economy. Oil-powered Abu Dhabi is responsible for around 65 percent
of the federation's output.
The UAE, one of the world's top oil exporters, has
yet to release 2013 GDP data. Analysts polled by Reuters in January expected
4.3 percent growth in both 2013 and 2014.
Dubai's tourist numbers rose 10 percent to 11
million people in 2013 and new trade licences recorded an increase of 12
percent. Real estate transactions jumped 53 percent to above AED236bn ($64.3bn).
Selling prices for residential property rose by
about a third from a year ago in the first quarter of 2014, prompting an IMF
warning of a possible real estate bubble.
The Dubai property market is at standstill and starting to decline in places. This fall will start to accelerate soon. Time to remove constraints to avoid a freefall
Putting tougher measures would only mean slowing the sales process, and putting breaks in the sales cycle. I am sure people may want to buy and sell to make a profit and not buy and sell at loss!
Dubai pricing is based on good infrastructure, brand new properties and much better living compared to Mumbai/Karachi/Dhaka, so I believe there is a lot of room for sellers to sell at a good premium! Time for markets to swing upwards....
Bring up the investment visa policy again as it was in 2007 & than c how the market move. If policy needs to having circuit breakers than RERA needs to complement the investors in the projects which are getting delay due to Oqood registration. Further, the rental policy needs to be rectified as tenants must be screened up as multiple contracts are signed by having extra leverage as they do sub let without registering to IJARI or doing short term due to lack of awarness to expat land lords.
Some lucrative measures to attract investors. Instead work out some flexible measures on unlimited transits or visa on arrival for investors and lots maybe in this area on a quick time scale.
The current format is good but still not enough I guess. We have all observed by now the market is still slow, so which means it needs more positive changes.
Buyers also probably want to know whats in it for me? These days people are lot more conscious. I do agree that Visa restrictions and freezone withdrawals in certain pockets were some key reasons affecting the real easte.
I don't think recession can really affect Dubai, it has the power to fly on its own. Dubai is more popular for its trading and should continue doing it!!. If right and positive measures are taken then it will definitely spring back into action.
Countries are looking for an alternative home with the instability globally and Dubai is very much blessed to offer that shelter home with immense options. God bless Dubai!