According to Jones Lang LaSalle, residential asking prices for property in Dubai has plummeted -49% since the third quarter of last year, with rents falling -35% in the same period.

However, the report does show that the rate of decline is slowing, giving hope that a recovery could be underway by the beginning of 2010. Overall, values fell -24% in Q2 2009 but the gap between asking and achieved prices is narrowing.

Rents also fell less sharply in Q2 2009 as the average rent for a two-bed apartment fell by -15% in this quarter compared to -22% in the first three months of the year. In addition, the level of transactions has stabilised with volumes between the first and second quarters of this year levelling off compared with a -58% fall between the second quarter of 2008 and the same period in 2009.

Around 22,400 residential units are expected to be handed over in 2009, despite over $24bn worth of residential projects being put on hold or cancelled, according to the report.