Dubai house prices 'set to fall 10pc more'

Dubai's housing market still has nearly a third too much supply and prices will plummet by another 10 percent, deepening a three-year rout to nearly 60 percent from its peak, a Reuters poll showed on Wednesday.

Rents and prices in Dubai's once-booming property market have been in a free-fall over the last few years, pummelled by the global financial crisis, ensuing global slowdown and the Gulf state's own debt crisis.

Residential property prices in Dubai, which boasts of the world's tallest building and man-made islands in the shape of palms, will fall 58 percent from a peak in the third quarter of 2008 according to the median estimate of 11 banks, investment firms and research institutions.

"Despite increasing transaction volumes and improvement in economic activities, property prices in Dubai are expected to be under pressure due to oversupply," said Sajeer Babu, an analyst at National Bank of Abu Dhabi.

Source: TradeArabia.com