MANAMA: With all sectors of the Dubai property market now gaining momentum in making a healthy recovery, industry experts are debating whether the emirate is entering another bubble and what needs to be done to maintain a sustainable growth path.
That will be one of the many hot issues at the upcoming Global Real Estate Summit, to be held alongside Cityscape Global - the Middle East's largest and most influential international real estate event - from October 8 to 10 at the Dubai World Trade Centre.
UAE real estate and business conglomerate Tharaa Holding chairman Tariq Ramadan, a headline panellist at the three-day summit, said some speculation has returned to the market, while the large amount of cash transactions continue to cause headaches for regulators looking to curb sharp price increases.
"The laws and other regulatory reforms made by the Dubai Land Department and the Real Estate Regulatory Agency have provided a sufficient and transparent environment for Dubai real estate investors, but more importantly, they have provided the much-needed protection for investors by making developer requirements more secure," he said.
"However, as an open international market, it is hard for authorities to put restraints on demand to avoid another property bubble, especially since more than 75 per cent of Dubai real estate transactions are cash deals.
"This means the use of interest rates and other constraints on loans will have minimum impact on overall demand," he added.
According to the Dubai Land Department, real estate transactions in Dubai were up 63pc year-on-year for the first quarter of 2013, reaching $12 billion, highlighting growing investor confidence in the emirate's property market.
Mr Ramadan said Dubai's open market policy and regulatory framework introduced over the past few years has been key to the emirate's real estate revival, but warned that any interference with current policy to temper escalating demand could impact its credibility and reduce investor confidence.
"I'm sure that there are certain measures that can be taken to manage demand and provide a strong foundation for sustainable growth," he added.
"This is indeed a very hot topic that is getting significant attention from media and industry experts.
"I am confident the summit will present some clear insights on the subject, and provide suggestions on how to make this growth sustainable," he said.
Organised by Informa Exhibitions, and supported by the Dubai Land Department, Cityscape Global is the annual meeting point for key real estate investors, developers, investment promotion authorities, architects, designers and other real estate professionals to drive growth in real estate investment and development across emerging markets globally.
The three-day event will host more than 200 exhibitors.