Dubai Property Prices to Drop Another 20%, Credit Suisse Says - Bloomberg.com

Dubai house prices, which halved since mid-2008, may drop another 15 percent to 20 percent this year on an increase in supply as more real estate projects are completed, Credit Suisse Group AG said.

“We expect residential prices to decline by another 15-20 percent in Dubai as the oversupply gap peaks in 2011,” Dubai- based analyst Ahmed Badr wrote in a report. “We expect Abu Dhabi’s residential prices to come under pressure as new supply comes online, thus narrowing the price gap with Dubai despite the continued supply shortage and the strong replacement demand.”