Dubai’s property prices may fall by another 30 percent

House prices in Dubai could drop by another 30 percent and could take at least 10 years to recover, according to a report issued by financial services firm UBS. The report blamed the slow recovery on oversupply in the market and Dubai’s shrinking population.

The city’s residential property market may be 25 percent oversupplied by the end of next year, UBS analyst Saud Masud said in a statement. Meanwhile the city’s population may fall 8 percent this year and another 2 percent in 2010, he added.