Dubai fighting 'off-plan' property sales

[DUBAI] Dubai is planning new rules to control speculation on properties sold before they're built after home prices climbed by more than 30 per cent last year, the head of the emirate's Land Department said.

The real-estate authority plans to complete a review of what are known as off-plan transactions in the first quarter and may introduce new regulations in the second or third quarter, Land Department general director Sultan Bin Mejren said. Home prices this year may rise 35 per cent to 40 per cent, he said.

"Transactions on off-plan properties are a little dangerous," he said on Jan 6. "We are now studying them and looking at ways to ensure that they don't hurt the market."