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Dubai Property Prices may Fall 60pc From Peak: Shuaa

Real estate prices have fallen by around 40 per cent in Dubai and by around 15 per cent in Abu Dhabi from their peaks last year, Roy Cherry, vice-president, research at the Dubai-based investment bank told reporters on Sunday, adding that rents in Dubai are likely to fall some 20 per cent in the next two years.

“Dubai is seeing a negative growth in demand for real estate,” Cherry said.

“At the same time it is seeing an increased output. We think the net result of that is lower occupancy rates, going down to the 80 per cent level which will mean a correction in the rents.”

Dubai’s population was likely to fall 5 per cent in 2009 on job losses, while the population of the UAE would ease 1 to 1.3 per cent, Shuaa said.

Rental rates for apartments and villas have been levelling off throughout 2008, with an average growth rate of 4 per cent and 8 per cent respectively, property services firm Asteco said in a report last week.