Panic selling by Dubai property speculators is driving prices down, eroding confidence and making banks reluctant to lend, the CEO of MAG Group Properties said yesterday.

A mass sell-off by speculators, whose frenzied buying and selling of off plan properties before the global crisis contributed to Dubai’s housing crash, is ‘undercutting the fair market price’ according to Mohammed Nimer, the boss of developer MAG Group Properties, which has a portfolio worth AED3bn.