Dubai's hot property market is clearly becoming too hot, even for authorities. On Sunday, the government of the emirate began doubling real estate transaction fees from two to four percent.
The ruling affects freehold property, a popular investment vehicle for foreigners.
Prices have risen dramatically over the course of the past year, and the International Monetary Fund (IMF) recently advised policymakers to consider additional legislation to curb excessive price gains in the market.
Nick Maclean, Managing Director at CBRE, a global real estate advisory, explained to CNBC the balance between buyers who are end users and buyers who are short-term speculators was simply out of balance.
"The government is therefore absolutely right in proposing several different measures designed to encourage people to take a longer term view on the Dubai real estate," he said.
The sustainability of the exorbitant price growth in the property market has been met with skepticism. There are concerns that a replay of the bubble that burst spectacularly in 2008/2009 and pushed Dubai to the brink of default is underway.