Apartment prices on the Palm Jumeirah, one of Dubai's most popular places to live, fell by 9.5% during 2018, according to new research.

The UAE Property Report by Savills also showed that capital values across Dubai Marina and Jumeirah Lake Towers, also popular with expats, dropped by 5-7% in the same period. It added that prices for apartments in Downtown Dubai were down by 16% while values in the Burj Khalifa were 12% lower than the 2017 average.

Across the villa and townhouse segment, capital values on average were down by 9% in Arabian Ranches, 12% in Meadows and Palm Jumeirah and around 14% at Jumeirah Park when compared to December 2017.

Savills said Dubai’s residential real estate market was firmly in a correction phase during 2018 with inventory levels piling up across micro-markets as large schemes launched during 2014-2016 were handed over to the market. A slowdown in global trade and financial markets also weighed down on demand.

The report said that transaction activity declined by approximately 22% compared to the year earlier period and buyers have adopted a wait-and-watch approach.