"The over-zealous buy-at-all-costs approach to real estate of the last two years will make way for a more contained marketplace. This should not be seen as negative: it ultimately bodes well for Dubai as a sustainable real estate option," said Wride.

"A slow-down in share prices and rising rents continue to make the real estate sector a very healthy investment option, whether for developers or individuals.

"Regional real estate prices are likely to peak this year as more developments come on stream, to offer buyers a chance to buy bricks and mortar rather than off-plan. There may even be a slight downward correction but a sustainable growth of around 12 per cent year on year is much healthier than any boom or bust scenario."

According to recent estimates, there is currently $45 billion in real estate under construction in Dubai, with another $45 billion in the development stages. 

A significant number of new players has entered the market, including Capital Partners, the master developers for the $1 billion Riverwalk development in Dubai Internet City.

The Dubai Ministry of Planning predicts that at the current rate of growth, Dubai's population will almost double to more than 2 million people by 2010, and up to 4 million by 2017. In addition, the number of tourists visiting Dubai grew by almost 50 per cent from 2001 to 2004 to 5.4 million people, with Dubai government figures targeting 15 million visitors by 2010.

Wride continued: "The developments in the Dubai property law of a few weeks ago have signalled yet more confidence in the real estate market here and we expect prices to go up a few per cent in the short-term as new buyers enter the freehold market."

According to Wride, developers need to put fail-safe guarantees in place.

He said: "While Dubai is booming, most noticeably in the real estate sector, we must ensure that we meet and exceed the customers' expectations to build a sustainable platform for the future.

"We will fast-track best practice implementation and internationally recognised standards which will, in turn, encourage investors from outside the region."

Capital Partners has introduced a number of recognised international safety measures, including escrow accounts on real estate transactions, and watertight construction contracts to ensure they deliver on time - and to specification.