Monday, January 24, 2011

Dubai Property Prices To Fall Another 10%

Abu Dhabi Skyline 3Image by buckofive via FlickrReal estate prices in Dubai, already nearly 60 percent from their peak, are set to fall another 10 percent over the next two years, as new devices are released in a market flooded with offers, according a Reuters poll.

A Dubai real estate boom collapsed in late 2008 when he was beaten by the global financial crisis and debt crisis of the Persian Gulf state is.

Housing prices in the state of the Persian Gulf, home of the tallest building in the world, which has 900 homes plunged 58 percent from their peak in the fourth quarter of 2008, according to the median estimate of 15 banks, firms investment and research institutions.

Prices in Dubai and Abu Dhabi fell five percent and 10 percent respectively in 2011, according to the survey, which was taken last week.

The decline continued in 2012 with prices of 4 per cent in Dubai and Abu Dhabi 4 percent, according to the median forecast.

Abu Dhabi, United Arab Emirates and home to most of its oil, weathered the financial crisis better than Dubai, but now faces an oversupply of goods. Prices have already fallen by 45 percent.

In the latest sign of the housing market is in trouble, Abu Dhabi government has intervened with an aid package of $ 5.2 billion for the state's largest developer Aldar Properties will help the company meet looming debt obligations.

Analysts do not see the Dubai real estate market bottom out until the second half of this year, as soon as possible.

Rents in Abu Dhabi is to reduce by 13 percent in 2011 and 5 percent in 2012, according to a median forecast of 12 analysts.

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