To react to the ongoing global financial crisis, Dubai has introduced new regulations to protect one of the segments that led the way in Dubai's financial growth.
During the past few days a couple of events that took place in Dubai gave the indication that the bubble everyone was talking about is about to burst. Damac letting go 200 employees, stories about Nakheel putting a hold on 7 major projects, stocks of major real estate companies nose diving in the stock market. All of that added to a rumor that prices have went down 4% since September!!
To counter this fear factor new regulations have been introduced to boost investors' confidence in Dubai's real estate market. Some of these new regulations include: Power vested in developers to issue residence visas for investors at the point of sale, which is obviously an important boost to the invstors' confidence given that Dubai is the only place in the world that offers such option. An important ammendment is the assurances that ivestors will get by registering every deal in Dubai Land Department which guarrantees to those investors that shady deals and properties that used to be planned and advertised and then put on hold after the first payment is history. Other rules regarding mortgage and freehold further boost confidence.
All that will be put to test in the coming few months, and everyone will be watching how Dubai will react to this global crisis! Questions will be asked about how diversified Dubai's economy is, and how this will help protect its growth.