Dubai property values could crash 60% in 2009

Country:  Abu Dhabi

27 January 2009

Property in Dubai could depreciate in value by up to 60% during the course of 2009, according to UAE bank, Shuaa Capital.

The bank has cited negative population growth, project cancellations, and a lack of mortgage availability as the main reasons for its negative projection, with prices not expected to stabilise until at least Q4 2009.

“Prices in Dubai could lose 50 to 60% by the end of 2009 from their peak last summer,” Shuaa Capital analyst, Roy Cherry said, noting that the market will find market conditions particularly “tough” during the first half of this year.