Dubai house prices could fall as much as 70% from a fourth-quarter peak as investors are unlikely to consider re-entering the market, which faces significant oversupply by next year, according to UBS.

'In our view we are still in relatively early stages of the property down cycle in the UAE,' the bank said in a research note.

'We believe risk-reward profiles are not yet compelling for investors to consider market re-entry hence continued price declines are expected.'

The National