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U.A.E. House Prices May Drop an Additional 30%, Rasmala Says

House prices in the United Arab Emirates may drop an additional 25 percent to 30 percent as population growth stagnates and more properties are put onto the market, according to Dubai investment bank Rasmala.

Prices have declined as much as 55 percent from their peak in 2008 and both Dubai and Abu Dhabi, the biggest of seven sheikhdoms in the U.A.E., are affected by “a low appetite for new housing as financing remains tight and negative equity concerns linger,” analysts Saud Masud and Divya Arora wrote in a report dated today. “The good news is that much of the property correction is already accounted for.”