I think it will do the exact opposite. This recent mini recovery and subsequent rise in Dubai property values seems to have been driven largely by end users. Forcing them out of the market creates less demand and fewer transactions. I think we will see more properties sitting unsold on the market and being converted back into rentals. Makes you wonder why they instituted this law so early in the recovery. Are they trying to inject more liquidity into the local banks?
It's easy to forget that Dubai is a place where the rules change overnight and the playing field is rarely level.