DUBAI: Residential property prices in Dubai have fallen 25 percent since peaking last September, with high-end real estate units in the Gulf emirate taking the biggest hit, Morgan Stanley said.
Real estate prices in UAE capital Abu Dhabi are also down an average of 20 percent since a peak last summer as the UAE’s property sector is dealt a “worse than expected” blow by the global financial crisis, Morgan Stanley said in a research note.
“Anecdotal evidence suggests sharp falls in transaction volumes in the fourth quarter due to deteriorating economic conditions, the disappearance of speculative buying and the lack of financing,” the bank said in the Jan. 30 note.
Since September, Dubai apartment prices have fallen 25 percent and villa prices are off 26 percent.
