Property prices and rents in the United Arab Emirates may drop a further 20% this year and next because of excess supply, according to analysts.
Meanwhile the latest data from CBRE shows that sales transactions in Dubai fell 45% in the third quarter of the year, adding another blow to the emirate’s already battered residential property market.
‘There is a further leg down to the UAE property market before residential prices and rents recover,’ said analyst Mohammad Kamal of Arqaam Capital. ‘We see a further 15 to 20% in downside to prices and rents in financial year 2011 and 2012,’ he added.
Source: Property Wire