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Mon 5 Oct 2009 02:40 PM

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Abu Dhabi house prices 'close to bottom'

Mubadala Real Estate and Hospitality chief says prices in city down by up to 40%.

Abu Dhabi’s property market is "close to the bottom" and prices have fallen as much as 40 percent from their peaks last year, Mubadala Real Estate & Hospitality (MREH) said on Monday.

“I don’t think people are saying they don’t want to buy, they are waiting to see if prices go lower,” said John Thomas, executive director of MREH.

“If it [the market] is not at the bottom, it’s close to the bottom,” he added. They [prices] have been falling in some parts by 20, 30 percent to 40 percent. It depends on the project.”

A sharp property downturn hit the UAE last year, triggered by the global financial crisis.

MREH, which specialises in large commercial, residential and leisure developments, is a division of Mubadala, the investment fund, owned by the Abu Dhabi government.

Its projects include Sowwah Island, Abu Dhabi’s future financial centre, Sowwah Square, and Mina Zayed Waterfront in Abu Dhabi.

“The market has pent-up demand that is sitting on the sidelines. There is a lot of liquidity waiting to be spent,” Thomas said.