In order to discourage speculation, DLD plans to increase
fees or introduce restrictions in the sales of off-plan properties. This move,
according to IMF, would further discourage speculative demand.
Last October, the registration fee was increased from 2 to 4
% as similar moves have been made by other countries that face the bubble
crisis. As a counter measure, most developers have imposed restriction on sales
of property before 40- 50 % of the payment is made.
The country is fearful of another property bubble burst as
the Central Bank and IMF revealed low rental yields indicating imbalance and
overheating in the property market.
