'Get rid of short-term property investors' says Dubai bank

A Dubai-based bank has suggested a huge capital gains tax measure to discourage short-term property investors.

Gulf News reports Standard Chartered Bank believes a 50 per cent rate on properties bought and then sold on within 12 months would discourage speculators and “improve the stability of the market”.

The bank’s suggestion comes amid fears the ongoing interest of foreign buyers in the Dubai market is destabilising the local economy.

In comments likely to concern property investors around the world, Gulf News quoted Marios Maratheftis of the bank as saying:

“It is a hot topic and having a huge impact on the economy. We need to get speculators out of the market.”

Short-term property investors, rather than buyers looking for a property for the long haul were “hurting the market” he added.

Mr Maratheftis is the bank’s regional head of research for Middle East, North Africa and Pakistan.

If introduced, such a tax would mean an investor spending £326,000 on an apartment in development such as Zero Five Zero Dubai Waterfront, close to the Dubai Marina, would face losing £10,000 if able to sell it on for £336,000 within a year.