Dubai's property bubble puzzle - Property - ArabianBusiness.com:
"Given the financial crisis Dubai faced in 2008-2009, you could be forgiven for assuming that a recovery in real estate prices in the emirate were a good indicator that things were getting back on track.
However, a recent report from the International Monetary Fund (IMF) took a slightly different tack. Highlighting a sixteen percent rise in residential prices in the year up until April, the IMF was quick to warn that further hikes could revive fears of a property bubble similar to that which precipitated the last crash.
There has been at least one attempt to head off this possibility. The UAE central bank last year tried — unsuccessfully — introducing measures to curb speculation and unrealistic increases in real estate prices. A proposed mortgage cap would have meant that home loan lending would be restricted to 50 percent of sales price to foreign buyers and 70 percent for UAE nationals. This plan was put on ice temporarily though after commercial lenders in the Gulf state complained that their business would suffer as a result."
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