Why is Dubai trying to put its real estate sector in the reverse gear?

The desert gave Dubai an easy excuse to keep building.

Sprawling for miles in every direction from the dueling skyscrapers on the coast, villa communities have sprung up across the sandy interior, bringing with them schools, hospitals and shopping malls. Where the dunes once spilled into the Persian Gulf, an eight-lane highway now connects the new developments with the established neighborhoods.

But five years into Dubai’s property funk, the emirate’s leadership is drawing the line.

Work on a mega-airport, designed to be one of the world’s biggest, was put on hold. And in the most dramatic U-turn yet, Dubai’s ruler has created a