One of Dubai’s leading real estate developers, Aldar Properties has announced plans to place restrictions on the terms and conditions of its property sales as a result of a property “flipping” trend that is occurring frequently across the entire UAE.

The move comes after a recent jump in property prices in Abu Dhabi (61%) and Dubai (37%), both increases were published at the end of 2007and into 2008.

CEO of Aldar Properties, Ronald Barrott spoke with The National (a UAE based daily publication): "A degree of speculation can be good, but it needs to be tempered... You can’t let the market get out of control; otherwise you have what is going on in Dubai.”

Barrott continued: “That is not a criticism, but there is overheating there. What you want is a market that moves quickly, but is sustainable.”

Property “flipping” involves investors that buy and sell units quickly in order to secure a higher asking price and this is what is believed to have caused the recently reported property increases in certain areas.

Aldar Properties are not the only company to enforce such restrictions, Nakheel are also implementing similar regulations in an attempt to stop the ongoing property “flipping” trend utilized by developers.