Residential property prices in Dubai dropped 8% in the fourth quarter of last year, the first quarterly decline since foreign ownership became legal in 2002, according to Colliers International.

'Tighter liquidity, more selective lending and growing negative sentiment are all bringing about these changes,' said Ian Albert, the consultancy’s regional director.

According to its fourth-quarter House Price Index (HPI) released today, the average price of 14 developments was Dh1,770 (US$481) / sq ft, down from Dh1,919 per sq ft in the third quarter. Over last year, prices rose by about 59%.

The National