Dubai-based developer Emaar Properties has banned real estate agents from ‘flipping’ homes before completion in order to create more stability in the property market.

A strong recovery in the Dubai property market, following the crash in 2009, has led to several investors purchasing and quickly reselling off-plan properties in order to earn substantial profits from rising prices.

However, according to Emaar, Dubai’s largest real estate developer, local estate agents were getting in on the act and purchasing properties to later sell to end-users. 

“Emaar has asked the real estate agents to not resell off-plan properties until the unit is completed and handed over,” the company said in a statement. “This is also aimed at providing more stability to the real estate market and to minimise the adverse impact due to heavy speculative practices.”

Individual investors will not be affected by the ban and are still allowed to buy and sell homes before they are completed however.

Dubai property prices have recovered about 20%, due in part to foreign investment, after falling more than 50% in the economic downturn.