Dubai property prices ‘to fall 10%’ in 2010
Further drop in purchase and rental prices is expected this year, says poll.
April 13, 2010 5:47 by kippreport
Dubai house and rental prices are expected to drop a further 10 percent in 2010 and not recover until 2012, according to a poll conducted by Reuters.
Residential property prices have already fallen 53 percent in the wake of the financial downturn, according to the median estimate of 17 analysts in the poll.
Only two respondents said house prices had reached a bottom, while three said they expected prices to reach a trough in the first half of 2010. Five predicted this would happen in the second half of 2010, and six in the first half of 2011.
A recent report by Deutsche Bank AG found that Dubai apartment purchase prices declined by 1.1 percent in March, while villa prices were down by 1.7 percent compared with the previous month. However, Deutsche Bank report found that the rental market was a little more promising: Dubai apartment rents rose by 1.1 percent in March, while villa rents climbed 1.3 percent during the same period, it said.