After consideration and submissions from members of Emirates Banking Association, the Central Bank of UAE has agreed to implement a reasonable mortgage cap, with the aim to stabilize real estate market. Set at a mortgage lending limit of 70 to 75% for expats and 75 to 80% for Emiratis, the new limits would be ideal to sustain the market, according to a study by Geopolicity. According the Geopolicity report, the government should also adopt the following measures for controlled growth of real estate market.

• Reselling duties/penalties on properties within 24 months of initial purchase
• Strict income assessments to avoid mortgage defaults
• Prefer fixed rate mortgages over adjustable rate mortgages
• Secondary market expansion to increase liquidity
• Adding more transparency in mortgage regulation and lending
• Improve literacy and awareness among lenders and buyers about financial issues
• Amplify competition for mortgage lenders and better regulate market