Prices at struggling Dubai developer Nakheel’s Palm Jumeirah will fall by 20% in the next year, ArabianBusiness.com reported today.
At a special gathering of the Arabian Business Think Tank business leaders predicted that prices for an apartment on the man-made island would fall to AED1,022/sq ft ($278) by May 2011
ArabianBusiness.com also reported today that Moody’s has voiced concerns over the supply-demand imbalance across the Arabian Gulf’s property industry.
In a report Moody’s Investors Service said that it has a negative outlook on the Gulf market because of the fundamental credit condition sint he area over the next 12-18 months.
"The supply-demand imbalance in commercial property and to some degree in residential units, depending on the city or country, is likely to grow worse as vast supply meets slack demand and is a major driver of our negative outlook," said Martin Kohlhase, author of the report.