Dubai property price falls to create bargains

Dubai property prices are expected to fall further over the new few weeks amid growing concerns over the availability of finance after the emirate said it would postpone debt payment on two of its largest property schemes.

Dubai shook the world’s financial markets last week when it said it would ask creditors of Dubai World and the Palm Jumeirah to permit a freeze on billions of pounds worth of

Saud Masud, head of research and senior real estate analyst at UBS in Middle East and North Africa, said: “The news plays on investor psyche and house prices may slide a further 20-30% earlier than our existing view of second half of 2011.

“There may likely be further job cuts as a result of any potential restructuring, and that could directly impact population outflows and result in housing oversupply.”

Any further falls in Dubai property values is likely to alert shrewd investors interested in buying property in Dubai at rock bottom prices.

Masud added that the downward impact across some parts of the Dubai property market could just be “short-term”, suggesting that the medium to longer term prospects could be brighter.

A number of recent reports have claimed that conditions in the Dubai's real estate market, where prices have fallen by up to 50% since late 2008, were getting better.