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Dubai isn't marching in to yet another real estate bubble following the market's crash in 2008-2009, according to one bank boss in the emirate, despite increasing real estate property costs and mortgage lending.

Information published by property study firm Reidin.com showed that home mortgage lending hit US$323m in the third quarter, upward 25 percent from US$258m a year ago. In the same period, sales transaction value in Dubai was US$886.m, up from US$704.9m twelve months previously.

Despite these raises, the BOSS of Islamic lender Noor Islamic Bank said he did not consider that Dubai is on the verge of the property bubble related to that seen in 2008, whose ultimate crash led to home prices falling by as much as 60 percent.

"I do not think so. We have been watching the high risk activity," Hussain Al Qemzi told Arabian Business in an meeting.

Dubai: The strong appreciation in real estate sales prices seen this year in selected areas of Dubai is likely to decelerate by mid-2013 on the trunk of new offerings in the principal market, says EFG Hermes.

Emaar Properties' participation in the Mohammad Bin Rashid City development is positive for the market notion solely. "However, we believe that the success of the enterprise is likely to be solely influenced by the availability and cost of financing, which currently remains scarce." Next year, also expects its plans to be unveiled by Emaar for the district (now likely a area of the recently announced MBR City) which, an analyst reckons, is likely to be along with a sizeable residential component. "If the job is executed too quickly, over-building and over-leveraging could once again pose hazards to the financial health of the sector."

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