Property prices in Burj Dubai tumble up to 50% - report

Property prices in Downtown Burj Dubai, Emaar Properties' flagship development, have fallen at least 22 percent, while prices in the Burj Dubai tower itself have tumbled as much as 50 percent, UAE daily The National reported on Wednesday, citing brokers.

UK-based property consultants Sherwoods said prices, excluding the tower, had fallen from an average of 3,500 dirhams ($952) per square foot to 2,700 dirhams in Downtown Burj Dubai, according to the newspaper.

The National did not say over what period prices fell. The newspaper did not detail what prices had fallen from and to in the Burj Dubai itself.

Brokers said Downtown Burj Dubai had seen some of the biggest price drops in Dubai because prices had previously risen so quickly.

Figures from international real estate agency Hamptons show prices in the development rose by an average of 88 percent in the year to September, the newspaper said.

Vincent Easton, the head of sales at Sherwoods, told Arabian Business property prices had fallen in Downtown Burj Dubai, as they had across the city, but stressed fundamentals in the area "are very strong".

Easton said the recent "sharp correction" in prices had been caused by short-term speculators fleeing the market, but that the medium- to long-term outlook was still very healthy.

"If you're looking to invest in property over the next five to 10 years you cannot go wrong," he said. "We are telling our clients that if you can, hold [onto your properties]."