The doubling of the property registration fee is lowering speculation and helping to reduce the risk of a bubble forming in the market, according to the Dubai Land Department.
Data from the regulator showed that Dh101 billion worth of transactions were registered since the start of the year, attracting 16,743 investors.
“The strong performance in the real estate sector indicates a trend that we expect to be sustained over the next year and beyond. The number and value of real estate transactions since the beginning of the year to date indicate both that investors have become more aware and that the market has become rich with investment options,” the director general Sultan Butti bin Mejren said yesterday.
He said that demand was a result of an improvement in fundamental economic factors, rather than speculation.
According to Mr bin Mejren, the increase of the registration fee to 4 per cent from 2 per cent last year has helped “block speculators who drive the market and contribute to a real estate bubble”.
business@thenational.ae
Follow us on Twitter @Ind_Insights
