Dubai bans flipping of homes

Photo: Eugene Kaspersky

Flipping is a popular option for many buyers, particularly during times of low house prices or strong, quick recoveries, when homes can be purchased and quickly resold at a significant profit.

In Dubai, where prices have rocketed 20 per cent in recent years, buying off-plan property only to sell it on a short while later can yield strong gains. Indeed, Emaar, the emirate's largest developer, has reported several instances of estate agents buying homes only to market them again to end-users. Now, though, it has banned the practice.

"Emaar has asked the real estate agents to not resell off-plan properties until the unit is completed and handed over," World Property Channel quotes a statement from the firm.

"This is also aimed at providing more stability to the real estate market and to minimize the adverse impact due to heavy speculative practices."

Despite this, individual investors can still buy and sell off-plan properties before they are finished.