Dubai property values 'to fall 20 per cent'

Prices of property in Dubai could fall by an average of 20 per cent, the chairman of the emirate's largest developer has stated.

Mohamad Alabbar, head of Emaar Properties, noted that the firm expects values of homes in Dubai to drop further in 2009, with the decreases varying across the emirate.

However, he dismissed claims that real estate values could be cut by up to 60 per cent, telling the Al Khaleej newspaper that such a decline would be "illogical".

"There will be a variation in the percentage of decline based on the location and level of units," he added, noting that in some areas the fall could be as little as ten per cent.

Recent Credit Suisse figures published in the Khaleej Times suggest that the fourth quarter 2008 financial results for Middle Eastern property developers will be varied, with Sorouh Real Estate and Aldar Properties expected to record strong results but Emaar Properties likely to see profit falls.

Like this? Then share with your friends and colleagues!