Dubai’s property sector is suffering a sharp slowdown, with property prices tumbling -41% in Q1 2009, according to Colliers.

The slowdown has led to project cancellations worth billions of dollars and jobs being slashed. Colliers said in a report: ‘The drop in demand for commercial and rental space, following the decline in an expatriate workforce, will have a significant impact on the lease and occupancy rates in all areas of Dubai throughout 2009.’

Prime office rents fell by around -18% in the first quarter, compared with the same period last year, it said.

In a report, it said: ‘Many projects currently penned for completion during the course of the year are likely to be further delayed and pushed back into next year.’