Dubai has doubled property registration fees in a bid to reduce speculation as fears of a real estate bubble emerge.

After suffering from worst property crashes in 2008, Dubai has taken measures to avoid it again in the near future. The Dubai Land Department has doubled property-sale fees to 4 percent from 2 percent, effective from Oct. 6. The change will apply to residential and commercial properties but it won’t affect industrial real estate. The decision is intended to limit speculation which is harmful to the market and help it to gain stability and sustainability. The increase “may negatively impact property sentiment and demand for the next three to six months,” said Digvijay Singh, an analyst at VTB Capital Plc. However, “it’s the prudent thing to do because the more stable Dubai’s fiscal situation is, the better the long-term prospects for property values.”

The additional fee property is a step taken by the government to guard Dubai’s economy. The higher fee will generate revenue for the government, which does not impose income tax. The revenue will be used by the government to pay loan and bond maturities as part of its estimated $120bn debt mountain. Purchases of the homes will still be inexpensive by global standards and investors in Dubai will also have to pay alow property tax.