The introduction of mortgage laws and interim registration will provide greater regulation to protect buyers and curb market speculation, says Lynette Brown, legal consultant at Al-Tamimi.
Speaking at the Dubai Property Society's network event, Brown argued that new laws, due to come into effect next month, will slow down speculation and stop investors from flipping properties and inflating market prices.
The new interim registration law which includes the transfer of registration of off-plan sales from developers to the Dubai Lands Department, will see a mechanism for both buyers and banks to register interest in a property during the construction phase.
The new mortgage law should see enforced procedures for the mortgaging of a property, the consumer, bank and borrower.
"This is a positive move ahead to secure the interest of all parties involved in the sale and purchase of property within Dubai. It is now mandatory to register the sale of all off-plan properties with the land department prior to which, they cannot be resold, this will not only help reduce speculative pressure on property prices but will also strengthen consumer and lender confidence in Dubai's real estate sector, said Tariq Ajaz, Senior Vice President, Corporate Services at Amlak Finance.
According to a recent survey, the mortgage market in the UAE is currently worth US$5.4bn and is likely to triple to US$16.3bn during the next three years with more than 71% of UAE investors requiring a mortgage to finance property.
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