The governments of Abu Dhabi, Dubai and Sharjah in the United Arab Emirates have in recent months stepped up their fight against imbalances in the country's real estate market, local media reported recently.
The Abu Dhabi government has issued a law saying that government staff, Emirati nationals and foreigners alike, have to live in Abu Dhabi and can no longer reside in neighboring Dubai, otherwise they would no longer receive the housing allowance which makes up to 30 percent of a salary.
Many people working in Abu Dhabi chose to live in Dubai for lower apartment rents.
The law aims to fill up property under construction in order to avoid an excess supply in the real estate market. According to real estate firm Asteco, the Abu Dhabi homes market supply will surge during the second half of 2013 as over 8,500 new units will be completed.
Also, the Dubai government issued an ultimatum to owners of abandoned buildings to either complete construction or repair works, otherwise such buildings would be demolished.
In 2008, Dubai implemented a strict "one villa, one family" policy which implies that non-married bachelors are not allowed to share villas with other bachelors in residential areas dedicated to families. In addition, construction workers are only allowed to live in dedicated labor camps which construction firms have to provide.
In Sharjah, the local police have conducted several crackdowns this year and forced hundreds of bachelors to relocate because they lived illegally in family areas, according to reports by the Gulf News.