Q2 sees Dubai house prices plunging 24%

Sunday saw Landmark Advisory announcing that, in the second quarter, Dubai house prices fell by 24 percent from the earlier quarter; however, the pace of decline slowed, in line with improving global property markets.

Since the United Arab Emirates' capital, home to most of the country's oil, continues to deal with the global downturn better than its neighbor, prices fell in the same period in Abu Dhabi. Landmark said that the average sale price for villas in Dubai plunged 24 percent, while that of apartments decreased 17 percent.

In its May report, the firm had declared that in the first quarter, prices for villas and apartments fell 32 percent and 23 percent respectively from the fourth quarter last year. Though recession has adversely affected the Dubai's once-booming real estate sector; however, it should be noted that the investors are getting hopeful due to recovery signs shown by more mature markets such as the US and Britain.

Last week, Colliers International said: "Prices in the US rose in May for the first time in three years while prices in Britain gained for a third month running in July. House prices in Dubai are likely to stabilize by the fourth quarter, after falling nine per cent in the second quarter from the previous quarter."

Landmark forwarded that Q2, which saw apartment rents plunging 23 percent to 129,900 dirhams, also witnessed rents for villas in Dubai dropping 19 percent to 220,350 dirhams.

It said: "Transaction volumes rose 25 per cent and 20 per cent respectively as more people relocated to Dubai from the neighboring emirates of Abu Dhabi and Sharjah."