Dubai property prices fall, figures show

The average value of residential property in Dubai decreased during the second quarter, a new report has revealed.

According to the latest Dubai House Price Index from Colliers International, properties in the emirate are now valued at around nine per cent less than they were in the opening three months of the year.

Villas saw their values shrink by 18 per cent over the time period, something that may be welcomed by those who have been considering purchasing such a property for investment purposes.

However, the prices of apartments remained more resilient, with these falling by three per cent.

Ian Albert, regional director for Colliers, explained that prices in the market seem to be approaching their lowest point.

"We would expect Q4 2009 to be a better indicator of future trends," he remarked, adding that Ramadan and summer holidays often lead to results for the third quarter being distorted.

The figures differ slightly from those released by property firm Asteco recently, which suggested that values of villas and apartments have dropped by 13 per cent and 15 per cent respectively.