Finally - property prices showing a downward trend in 2008...
 

.....prices in the secondary market have begun to fall, according to a recently-created EFG-Hermes price index that tracks 2,500 apartments and villas in the secondary market.

The high-end segment has experienced the sharpest price falls, though average prices are still at 60% premium to launch. Some apartments in the luxurious Dubai Marina and Burj Dubai areas have declined around 50% from highest observed prices.Prices in the middle income segments have fallen by around 20% from the highest observed prices since launch.

Villa prices have only dropped slightly. Villa prices are now at a discount of around 10% on the highest observed prices since project launch.‘Price declines on highest observed prices' tracked by EFG-Hermes should not be confused with average price falls - they represent the very highest price ever seen within a specific category, compared with the very lowest price within that category. In reality prices are perhaps stable rather than declining - but the warning signs are obvious "

http://www.arabianbusiness.com/resea...ure/517507-uae

Re: Finally - property prices showing a downward trend in 2008...
 

Surely this is a completely meaningless statistic, unless I have misunderstood? What I would like to know is: What is the apartment I (hypothetically) bought in the Marina last year for 2.0M worth now, and what will it be worth in 5 years time? There doesn't appear to be anything in the report to tell me that. I suspect the (hypothetical) apartment hasn't gone up in 12 months but property should always be looked at as a long term investment, especially given the costs associated with buying and selling here.

Re: Finally - property prices showing a downward trend in 2008...
 

Actually, I think this link is more interesting and poses more of a risk to the market:

http://www.arabianbusiness.com/516690-shaky-foundations

I think this rising cost of construction (and labour) will probably finish off a few developers over the coming couple of years. Buyer beware. Again.
(Sorry to steal your thread Indie!)

Re: Finally - property prices showing a downward trend in 2008...
 

While the article relates to recent Damac escapades, the article pretty much reinforces what the masters of doom such as myself have been saying for the last 18 months.

Nothing lasts forever. The law of gravity applies.

Re: Finally - property prices showing a downward trend in 2008...
 

That's literal and metaphorical...build quality here is nothing on what goes up in the US, Europe etc. Some villas already look like they 20 years old yet haven't reached the 5 year mark.

Medium and long term investment in UAE property is extremely risky...but then I don't need to say that do I? ;)

N.