News: Doubling the property transfer fees in Dubai has restrained the

Read this article to know how the growing real estate speculation has put under control by doubling the property transfer fees in Dubai. DLD has confirmed that dubai real estate sector is not run by speculators but fundamental

The increase or the doubling of the property registration charges has contributed well in lowering real estate speculation and has helped the real estate market from forming property bubbles.

Data from the regulator showed that Dh101 billion worth of transactions were registered since the start of the year, attracting 16,743 investors. The increase in figures in clearing identifying that serious investors from all corners of the world are putting great initiative and interest for investing in Dubai-UAE.

The hiking growth in the real estate sector in UAE especially Dubai and Abu Dhabi is all because of the ever-expanding economy. It’s not just a speculation but a trend identified by the Emirate’s Land Department reported on Monday, June 10, 2014 after the central bank of the United Arab Emirates released their concerns over the overheating property markets in UAE.

Director General Sultan Butti Bin Mejren (DLD- Dubai Land Director) said in his official statement, “An improvement in economic structure has led to an increase in demand from investors”.

He further said that the increase in fee over property transaction to 4 percent in Dubai has cut down the number of speculators and is helping in many ways.

He did not comment directly or indirectly on whether his department-responsible for Dubai’s real estate market would take any steps or would offer any alternative plan to meet or cool down rising demands. However, his gestures and speech indicated that he and his department has no reservations over the growing demands or he showed no signs of uncertainties.

He mentioned that Dubai is one of the cities having low costs investment services. It is one of the driving factors attracting more and more investors to invest in Dubai. He stated, “Dubai has become a global partner and player, encouraging investors from all corners to invest in Dubai at entirely low cost services plan that has to be on a par according to city’s development and growth”.

The international monetary fund warned Dubai to have stronger tools and strategies to rein in the speculation. The international monetary fund indicated that those tools could be higher taxes or higher service charges so that the growing speculations stay beyond.

The authorities ensured that the Dubai property market is solely driven by serious fundamentals but speculators.