Dubai’s booming real estate market is starting to cool down but project delays are likely to push a much anticipated price correction back until 2009, new research says.

The supply of new apartments and villas has been delayed by materials and labour shortages, failing to meet demand of about 50,000 housing units a year from the steady flow of migrant workers arriving in this boom town, which has positioned itself as a business hub for the Gulf region that is benefiting from record crude oil prices.