Dubai : Dubai house prices, are set to fall by a further 10 per cent in 2010, a Reuters poll showed.
Residential property prices have a 13 per cent chance of picking up before 2011, according to the median forecast of 12 analysts at banks, investment firms and research institutions.
Only one of 13 respondents said prices had hit bottom, while four said they expected a trough to be reached in the first half of this year, three in the second half of 2010 and four in the first half of 2011, the poll showed yesterday.
Prices will fall a further three per cent in 2011, according to the median of 10 forecasts.
Rents in Dubai are poised to fall by 10 per cent in 2010 and to remain flat in 2011, but four out of 12 respondents expected rents to fall 15 per cent or more in 2010 while three saw prices rising in 2011.
House prices in Abu Dhabi will be unchanged this year, the median of 11 forecasts showed, with three analysts expecting climbs while one expected a fall of 25 per cent.
Prices will then rise by three per cent in 2011.
The National Bank of Abu Dhabi expects a shortage of more than 20,000 homes by the end of 2010 with demand rising due to a population increase and limited supply.
Rents in the capital will fall 15 per cent in 2010 and five per cent in 2011.
