Reports in Dubai suggest that the local property market has begun to soften.

Developers say new developments are no longer selling so quickly, and resale margins on unfinished properties are falling, suggesting that this is the beginning of a correction phase.

It appears that the resale market is starting to become overheated and consequently Nakheel, a major developer, has warned speculators not to inflate the market." A lot of people are not getting the expected resale prices on their purchases," Faris Saeed, general manager of Diamond Investments, was quoted by the Gulf News report as saying.