Dubai real estate property prices fall by 50% due to lower demand from buyers. According to reports,
the real estate market in Dubai is falling from 20% to 50%. It is predicted by experts that apartment prices
will fall by an average of 20%. Individual decline between 10% to 50%. Some how it depends on development.
Villa prices will remain stable with an average drop of 10%.United Arab Emirates capital Abu Dhabi suffered a fall of 20% prices since last summer. Qatar suffered a fall of 10%. It has now become a Buyer’s market rather than a Seller’s market.Buyers have more advantage in negotiating prices.
The property prices will continue to fall for 9 to nine months which resembles a situation in Hong Kong 11 years ago.The values fell ranging from 20% to 50%. Expert predicted that investors would come back if property becomes more affordable as the asking price now is unsustainable. From international News, projects worth $72.35 billion are in a dilemma causing great lose to pakistani investors. Although there is no official annoucement about projects development on hold from developers,reporters stated that over 50 building projects can be seen in standstill.Real Estate projects worth $3.275billion has confirmed to to be cancelled.
If this crisis continues, job losses will increase in construction field which will worsen the situation. Following day, news said that the real extent of the halt in developments in Dubai has been revealed by an international bank which estimates that projects worth £53 billion have now been put on hold. According to HSBC 59 projects have been severely affected by the global downturn and of these eight have been cancelled and the rest put on hold. In a report note the banks says that high end residential projects and commercial developments are those at most risk in the current economic conditions. Hopefully good news will come in coming months.