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Dubai prices to drop further

Hurriyet Daily News
Dubai prices to drop further - Dubai - Property - UAE - Housing Crisis - Real Estate


Dubai residential property prices, down 34 percent from their peak last year, are likely to fall a further 20 percent amid a decline in the emirate’s population, EFG-Hermes Holding SAE said in a report.



The number of people living in Dubai will fall 17 percent this year to 1.49 million, EFG-Hermes analysts said. The number working in construction may drop 30 percent as real estate and building projects are canceled or put on hold.

“Supply will far outstrip demand as the overall population declines,” analysts Sana Kapadia and Jad Abbas said in the report. “Minimal immigration is expected, especially due to the sharp contraction in the real estate and financial sector.”

The forecast comes as a squeeze in global credit markets last year slowed development in the emirate, home to the world’s tallest building, most expensive hotel suite and largest manmade islands. Dubai property prices are expected to “stabilize” in the first half of 2010 and may start rising by the second half or early 2011, EFG-Hermes said.


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