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Thu 10 Sep 2009 12:39 PM

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Dubai house prices see 47% annual decline

Emirate's price fall in Q2 is second only to Bulgaria - Knight Frank global study.

Dubai house prices recorded the second largest quarterly drop, falling 7.5 percent in the three months to June this year, a global property survey of 33 cities said on Thursday.Property values in Bulgaria plunged the most in the second quarter this year, slipping 9.7 percent, property consultant Knight Frank said in its latest Global House Price Index.

Dubai saw the largest annual fall in house prices to June this year of 47.3 percent, followed by Singapore where the average cost of residential property dropped 27.7 percent in the same period, the survey said.

But Knight Frank said there was evidence that Dubai’s struggling housing market was improving.

“Prices are still falling in Dubai, but the decline has slowed sharply,” Liam Bailey, head of residential research at Knight Frank, said in a statement.

“The second-quarter drop in Dubai was only 7.5 percent compared with a massive 41 percent slide during the previous three months. While the market still remains over supplied, transaction volumes have started to increase on the back of reduced asking prices, the increased availability of credit and more certainty from developers regarding the completion dates of projects,” he added.

Global housing markets have showed signs of "tentative" recovery, with values rising in almost half of the countries surveyed, the report said.

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John 11 years ago

While cold comfort for those of us insane enough to have invested in property in Dubai, it is heartening to know we are not the worst off. I patiently await Omar's advice on where to invest the 53 per cent of funds I have left from the Dubai debable.

John 11 years ago

Ofcourse prices have dropped! People who believed otherwise have been kidding themselves or living in denial. In some cases, prices stabilised during the summer months because for sellers, it wasn't worth dropping their asking price any further or they believed prices would increase in September because of people returning from vacation. Whatever the reason, prices never actually stabilised - there were just very very few sales occurring and of those sales, the majority were from vultures waiting by the wayside or from the resident population/investors that were here before the boom and will continue to be here in the future. Until there are some fundamental law changes and regulations put in place, people will stay away and i don't blame them. The longer it takes, the more damage there will be to the economy.