Prices for residential real estate in Dubai have taken a beating over the past few weeks and months, according to several recently released reports. Prices for many properties have fallen from 20 percent to 50 percent according to some news, though the overall price drop is uncertain.
The drop in prices is a result of lowered demand for properties and a lack of credit, noted analysts. Landmark Advisory, the research arm of Landmark Properties, predicts that in 2009, “Apartment prices will fall by an average of 20%, with individual declines ranging between 10% and 50%.”
While that sounds bad, there is some better news for villa owners. The report continues: “Villa prices are likely to remain relatively stable with an average drop up to 10%, with lower quality units bearing the brunt of the decline.”
As the market slows, many analysts predict that the developers of lower-quality apartments and homes will be hit the hardest. The Landmark report concludes that “As new supply encounters slowing demand the market will reward developers who deliver quality and punish those who do not.”
Dubai property news
