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The value of Dubai property transactions in 2014 fell 7.6 per cent

It is the latest bearish view on the emirate’s residential property market, which peaked last year.

JLL, the property broker, on Tuesday predicted that prices and rents in Dubai would drop this year by an average of 10 per cent. House prices had increased 56 per cent in the two years through June, according to the brokers.

The value of Dubai property transactions in 2014 fell 7.6 per cent compared with the previous year to Dh218 billion, according to Dubai Land Department data released this month.

Analysts do not expect a repeat of the crash between 2008 and 2009, when properties lost about half of their value. That is because of the introduction of stopgap government measures that have helped to cool the market for a softer landing.

Such measures include the doubling of registration fees charged on transactions to 4 per cent and the introduction of mortgage lending caps by the UAE Central Bank.

Dubai’s economy is also more diversified than before. There were now more non-oil companies in the emirate than before the crisis and supply remained under control, the analysts said.

Meanwhile, the residential market is expected to absorb another 25,000 new units this year, according to JLL.

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