The Central Bank's controversial plan for a cap on mortgages may do little to discourage property speculation, as signs emerge of "flipping" returning to the Dubai market and buyers rushing to the emirate from overseas.
But the plans could force buyers to think more carefully before jumping into the property market, bankers said.
Plans for loan-to-value limits on mortgages were drawn up by the Central Bank in an apparent attempt to cool the property market, but resisted by lenders who feared the collapse of demand for home loans.
Lobbying from the UAE Banks Federation led to a postponement of the mortgage cap, although the plans remain in discussion at the Central Bank.
But bankers have said that the cap was unlikely to halt speculative purchases, which have returned to the Dubai market in force this year.
"Speculation is not driven by people taking out mortgages. It's driven by people with cash," said Tom Smith, the head of retail banking at United Arab Bank.
However, the Central Bank's regulation on mortgages could force some buyers to be more cautious before plunging into the market, he added. "No amount of regulation is going to stop speculation... All it can do is bring a sense of sanity to everything."
The warning comes amid evidence that speculative buying with the intent of speedy resale - also known as "flipping" - is returning to the Dubai market.
The Dubai headquarters of Emaar Properties was the site of chaotic scenes last weekend as a sale of 188 town houses in its Mira development was mobbed by buyers seeking to take advantage of prices as low as Dh988,888, (US$269,231) allocated one per person on a first-come, first-served basis.
Buyers queued at Emaar Square for days in advance, with many leaving empty-handed.
But within less than 24 hours, properties snapped up at Emaar Square were available for resale online at Dubizzle.com, with markups of about 37.5 per cent on their offer prices.
Munir Ul Haq, the managing director of OSS Properties, which is reselling four properties online, said he had spoken to many overseas buyers who had travelled to Dubai specifically to stand in line at Emaar Square.
"I've met a lot of people who were disappointed to land late in the country, they couldn't get through to purchase these properties," he said.
A number of inquiries had come from buyers in India, Pakistan, Iran and China, he added.
Emaar's latest property sale for apartments in Burj Vista has switched back to an online registration for its latest sale.
The move towards more stringent regulation of retail banking was apparent across the Arabian Gulf as regulators tighten lending rules with the aim of protecting consumers, said Sanjay Malhotra, the head of retail banking at National Bank of Kuwait.
"Consumer protection is in vogue," he said. "All of us … have faced regulators with new regulations which restrict demand, cap prices and demand more transparency."
The UAE's mortgage law was "a very clear attempt to lower demand", he said.
Property agents have pointed to a large number of cash buyers in the Dubai market during the first quarter of this year, pointing to demand from wealthy investors rather than prospective homeowners, as property prices rise across the board.
"For the first time since mid-2008, all sectors of the Dubai real estate market are positioned in the recovery stage of their market cycle in Q1 2013," Jones Lang LaSalle said in a research report this week.
But bankers said that with the property market recovering and memories of the property crash fading, buyers should be aware of the possibility of another slump in values.
"People have got to remember 2009 and be sensible, and realise that the very same thing can happen again," Mr Smith said.
ghunter@thenational.ae
RESULTS
6pm: Mazrat Al Ruwayah – Group 2 (PA) $40,000 (Dirt) 1,600m
Winner: AF Alajaj, Tadhg O’Shea (jockey), Ernst Oertel (trainer)
6.35pm: Race of Future – Handicap (TB) $80,000 (Turf) 2,410m
Winner: Global Storm, William Buick, Charlie Appleby
7.10pm: UAE 2000 Guineas – Group 3 (TB) $150,000 (D) 1,600m
Winner: Azure Coast, Antonio Fresu, Pavel Vashchenko
7.45pm: Business Bay Challenge – Listed (TB) $100,000 (T) 1,400m
Winner: Storm Damage, Patrick Cosgrave, Saeed bin Suroor
20.20pm: Curlin Stakes – Listed (TB) $100,000 (D) 2,000m
Winner: Appreciated, Fernando Jara, Doug O’Neill
8.55pm: Singspiel Stakes – Group 2 (TB) $180,000 (T) 1,800m
Winner: Lord Glitters, Daniel Tudhope, David O'Meara
9.30pm: Al Shindagha Sprint – Group 3 (TB) $150,000 (D) 1,200m
Winner: Meraas, Antonio Fresu, Musabah Al Muhairi
Fresh faces in UAE side
Khalifa Mubarak (24) An accomplished centre-back, the Al Nasr defender’s progress has been hampered in the past by injury. With not many options in central defence, he would bolster what can be a problem area.
Ali Salmeen (22) Has been superb at the heart of Al Wasl’s midfield these past two seasons, with the Dubai club flourishing under manager Rodolfo Arrubarrena. Would add workrate and composure to the centre of the park.
Mohammed Jamal (23) Enjoyed a stellar 2016/17 Arabian Gulf League campaign, proving integral to Al Jazira as the capital club sealed the championship for only a second time. A tenacious and disciplined central midfielder.
Khalfan Mubarak (22) One of the most exciting players in the UAE, the Al Jazira playmaker has been likened in style to Omar Abdulrahman. Has minimal international experience already, but there should be much more to come.
Jassim Yaqoub (20) Another incredibly exciting prospect, the Al Nasr winger is becoming a regular contributor at club level. Pacey, direct and with an eye for goal, he would provide the team’s attack an extra dimension.
UAE currency: the story behind the money in your pockets
Five%20calorie-packed%20Ramadan%20drinks
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The White Lotus: Season three
Creator: Mike White
Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell
Rating: 4.5/5
NO OTHER LAND
Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal
Stars: Basel Adra, Yuval Abraham
Rating: 3.5/5
The biog
Name: Salvador Toriano Jr
Age: 59
From: Laguna, The Philippines
Favourite dish: Seabass or Fish and Chips
Hobbies: When he’s not in the restaurant, he still likes to cook, along with walking and meeting up with friends.
Fourth Arab Economic and Social Development Summit
As he spoke, Mr Aboul Gheit repeatedly referred to the need to tackle issues affecting the welfare of people across the region both in terms of preventing conflict and in pushing development.
Lebanon is scheduled to host the fourth Arab Economic and Social Development Summit in January that will see regional leaders gather to tackle the challenges facing the Middle East. The last such summit was held in 2013. Assistant Secretary-General Hossam Zaki told The National that the Beirut Summit “will be an opportunity for Arab leaders to discuss solely economic and social issues, the conference will not focus on political concerns such as Palestine, Syria or Libya". He added that its slogan will be “the individual is at the heart of development”, adding that it will focus on all elements of human capital.
Wonka
%3Cp%3E%3Cstrong%3EDirector%3A%3C%2Fstrong%3E%C2%A0Paul%20King%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStarring%3A%C2%A0%3C%2Fstrong%3ETimothee%20Chalamet%2C%20Olivia%20Colman%2C%20Hugh%20Grant%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%202%2F5%3C%2Fp%3E%0A
Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
Skewed figures
In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458.
Dr Afridi's warning signs of digital addiction
Spending an excessive amount of time on the phone.
Neglecting personal, social, or academic responsibilities.
Losing interest in other activities or hobbies that were once enjoyed.
Having withdrawal symptoms like feeling anxious, restless, or upset when the technology is not available.
Experiencing sleep disturbances or changes in sleep patterns.
What are the guidelines?
Under 18 months: Avoid screen time altogether, except for video chatting with family.
Aged 18-24 months: If screens are introduced, it should be high-quality content watched with a caregiver to help the child understand what they are seeing.
Aged 2-5 years: Limit to one-hour per day of high-quality programming, with co-viewing whenever possible.
Aged 6-12 years: Set consistent limits on screen time to ensure it does not interfere with sleep, physical activity, or social interactions.
Teenagers: Encourage a balanced approach – screens should not replace sleep, exercise, or face-to-face socialisation.
Source: American Paediatric Association
UAE jiu-jitsu squad
Men: Hamad Nawad and Khalid Al Balushi (56kg), Omar Al Fadhli and Saeed Al Mazroui (62kg), Taleb Al Kirbi and Humaid Al Kaabi (69kg), Mohammed Al Qubaisi and Saud Al Hammadi (70kg), Khalfan Belhol and Mohammad Haitham Radhi (85kg), Faisal Al Ketbi and Zayed Al Kaabi (94kg)
Women: Wadima Al Yafei and Mahra Al Hanaei (49kg), Bashayer Al Matrooshi and Hessa Al Shamsi (62kg)
Mountain%20Boy
%3Cp%3E%3Cstrong%3EDirector%3A%3C%2Fstrong%3E%20Zainab%20Shaheen%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStarring%3A%3C%2Fstrong%3E%20Naser%20Al%20Messabi%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3C%2Fstrong%3E%3A%203%2F5%3C%2Fp%3E%0A
