Global property slump has adversely hit the housing and realty sector in Dubai, the destination that once emerged as one of the costliest places in terms of housing in the world. In the changed scenario, resulting from the financial crisis, Dubai house prices have recorded a 47 per cent annual decline so far.

Housing prices, on quarterly basis, declined 7.5 per cent in the second quarter, as compared to 41 per cent decline in the first quarter of the current financial year. Rising number of expatriates caused unprecedented surge in property prices in last five years in Dubai - the city which emerged as global financial and service hub. Things take a twist following the breakout of financial crunch that started lay-offs and salary cuts, forcing land owners to cut rates.

Real estate brokerage Knight Frank LLC, on the basis of its latest Global House Price Index, said that falling trend in property prices would not last long, as the housing sector worldwide has started showing signs of recovery.

Knight said: "While the (Dubai) market remains oversupplied, transaction volumes have started to increase on the back of reduced asking prices, the increased availability of credit, and more certainty from developers regarding the completion dates of projects."