Dubai property prices fall 41%

The price of property in Dubai has fallen by 41 per cent in the first three months of the year, according to a new report.

Global real estate consultancy Colliers International said the fall follows a decline in the previous three-month period of eight per cent.

The report measured prices in the areas of the state that have been open to foreign investors since 2002 and indicates that the lower prices may allow buyers to snap up a bargain.

Mark Scott of Business Week said today that the recession is opening up a bonanza of cut-price deals for well-funded property buyers.

Colliers said prices were likely to continue falling, but it is not clear when the bottom will be reached.

Dubai has enjoyed a period of rapid economic growth in the past decade since its ruler Mohammed bin Rashid Al Maktoum took action to diversify the economy away from traditional oil.

The research firm cited worries over job security among the reasons for the property price downturn.