IMF urges Dubai to curb property speculation to avoid bubble

The United Arab Emirates should enact stronger measures to curb real-estate speculation in Dubai to prevent an “unsustainable” surge in prices, the International Monetary Fund said. According to Masood Ahmed, head of the IMF’s Middle East and Central Asia Department, there is evidence that prices of real estate have been rising at a very rapid pace over the past 18 months. However, not everybody shares the same view. The Institute of International Finance, a Washington-based financial industry association, said that the rise in U.A.E. property values probably won’t lead to an asset-price bubble because credit growth remains relatively modest.