Dubai among worst hit property markets in the world

Dubai real estate was the 9 worst performing market in the world last year, according to a new report by Knight Frank. However, the results of a survey of the 50 biggest property markets in the world also show the rate of decline in Dubai has began to slow.

Reported in Arabian Business, Dubai prices have declined 49.7 percent overall since the peak in the third quarter of 2008.

Last month, a survey of local analysts by Arabian Business found house prices in Dubai’s battered real estate market will slide a further 15 percent by the end of the year.

The Gulf’s worst-performing real estate market over the last three years has seen rents and prices more than halve from their 2008-peak, but residential costs have further to go, analysts said.

Oversupply continues to be a key driver behind falling rents and prices, analysts said. Colliers calculated that around 13,000 units are due to come online by the year-end, followed by a further 27,000 properties in 2012.

Dubai said in June it had cancelled 217 property projects as of May 31, following a review of more than 450 projects. The emirate said it expected a further 237 developments to be completed in due course.