Dubai real estate prices crash

Rents for residences in the famous Burj Khalifa tower are not immune from Dubai’s real estate crash. They have dropped and about 825 of the tower’s 900 ultra-luxury apartments remain unoccupied. This is less than a year from its grand inauguration. Rents for two-bedroom residences are expected to get $4,310, down from $7,183.

And if the famous tower is suffering, just think about other not so famous real estate projects, developments and apartments throughout the emirate.

Overall in the emirate, property prices have dropped an average of 50%. Some half-built projects, located away from the main highway that runs through the city, may never be completed because their values have dropped too much, analysts say.

But it’s the units that will be completed that are looming as a problem. The Dubai economy must still digest a flood of housing units coming on line or soon to be opened, which will further dampen prices. Through September, 27,000 residential units have been put on the market, and another 9,000 are expected to be completed by the end of the year, according to real estate firm Jones Lang LaSalle.

The Dubai Real Estate Regulatory Agency, worried about the crash, has announced the cancellation of several real estate projects.

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