Dubai’s property market has seen its ups and down over the past few years, with quite a few of those ups being caused by speculative land buyers looking to make a quick buck.
Property market speculation will always exist, but when speculation reaches a level that sours the entire market, action should be taken. Property developers in the emirate are trying to shut down speculators who buy plots and then leave them undeveloped, according to Gulf News.
These efforts, so far, are purely contractual, which is how it should be. Government regulation would be both costly and hard to effectuate. Making sure plots are developed will likely help residents in one very critical way: it will prevent a shortage of residential units from driving up prices.
Property speculators will still be able to find a way to invest in Dubai’s markets, but they will have to put their money into the existing market, where they will have to put in the time and effort to manage and improve those properties. The return on their investment, if any, will come from their efforts as managers, not as middlemen making an undeserved buck.