Dubai house prices slump: consultancy

Colliers International’s Dubai House Price Index slumped 48 percent in the three months ended June from the same period in 2008 on concerns over financing, expatriate job security and lack of transparency on project delays.

However, the rate of decline eased to nine percent in the second quarter compared with a 42-percent plunge in the first quarter, according to Colliers.

The average price rate for residential property fell to 949 Dhs (259 dollars) per square foot or 10,215 Dhs lars) per square foot or 11,162 Dhs (3,041 dollars) per metre square in the first quarter.

It gave no directly comparable figures for the second quarter of 2008.

“In the coming months, the market will be searching for further evidence of market stabilisation as we draw nearer to the bottom of the market prices,” said Ian Albert, regional director at Colliers.

The index is compiled using mortgage data from financial institutions representing 60 percent of the mortgage market in Dubai and analyses the trends for prices for both completed and under-construction properties.