Bubble trouble for dubai?

The International Monetary Fund has warned authorities that Dubai’s property market may be headed towards a price bubble.

A senior official at the IMF has cautioned the emirate that if the real estate shows signs of overheating, authorities should be ready.

Indeed, Dubai’s property market has seen a surge in prices and demand recently, with values leaping by more than 20 per cent, but Massood Ahmed, the IMF Director for Middle East and North Africa says that growth should be driven by fundamental factors rather than speculation.

“When you begin to see very rapid increases in any asset prices then you just need to be prepared to act. The government of Dubai is already beginning to act,” he told Reuters.