Growth set to slow but tight supply could prevent severe dip
Plans to diversify economy showing signs of progress

LONDONDUBAI, Jan 26 Reuters As cranes speckle the Dubai skyline and ultraluxury homes change hands at record prices, signs that the citystate39;s property boom is fizzling out are coming into view.

Developers, investors and brokers are privately asking how quickly one of last year39;s hottest real estate markets could turn and whether a painful correction akin to the slump that rocked the emirate in 2008 can be ruled out.

Since then Dubai has pursued an economic reboot anchored on what it hopes is sustainable growth, including a 10year plan known as D33, to double output and become one of the world39;s top four financial centres.

Still, the realestate industry remains a key barometer of its success, accounting for 8.9 of the economy.

Dubai39;s vulnerability to correction lies in its dependence on foreign capital, particularly from China and Russia, Ronan Hannan, principal at consultancy Proven Partners, told Reuters.

Massive infrastructure spending, generous income tax policies and an 39;opendoor39; approach to immigration reinforced after the pandemic have attracted thousands of foreigners.

Russians were the top nonresident buyers of homes in the first quarter of 2023 but dropped to third place by the end of the year, according to Betterhomes research, with buyers from India and the UK accounting for most of the transactions during the twelve…