Dubai Real Estate may face a slowdown in proceedings in near future

Since property prices have started to dip, doubts are re-surfacing about the strength of Dubai real estate market. Anxieties of the marketplace overheating have now looked to worries about whether the emirate will find another meltdown, with property prices growing at a high rate in Dubai.

Starting in 2009, housing prices in Dubai real estate crashed in the wake of the international financial catastrophe by more than half, but the marketplace has enjoyed a stronger than-expected rebound over the past few years as confidence returned. Fuelled weak stock markets globally, by low rates of interest and a desire among many investors to flee unrest in other regions of the Middle East, the emirate's property sector soared faster than another market on the planet in 2013.

This time around, the general viewpoint is the market has been supported by substantially-improved laws. The side effect from the avalanche of new supply into the market is that sales prices have started to fall, but the cooling of the market is usually viewed as a great thing, as 20 percent yearly increase had not been sustainable over the long term. Nevertheless, now that costs have started to dip, uncertainties are re surfacing about the market's strength. Given this change in opinion, the government would not be unwise to implement new measures to regulate the market and help restore confidence among traders.