ARACHI - The property prices in Dubai have slumped sharply in the backdrop of the current World economic meltdown. Dozens of new projects either have been shelved or suspended by the developers in Dubai amid intensifying crisis in real estate business. The ongoing financial crisis has pushed back the sparkling property market of the UAE, sources in real estate business told The Nation. In Dubai, the prices of ready apartments are likely to remain comparatively stable because the prices have already crashed up to 40 percent. Unit price of projects like International City and Discovery Gardens is already down by more than 30 percent and owners are asking cost-to-cost price of their properties, said Wajih uddin Ahmed, Dubai based owner of a real estate agency. "There was a time when new project owners used to ask premium for their properties but now, most of the new projects have been cancelled and investors were selling their units in lower than the original price. Projects like Sports City are facing a massive turmoil due to the lack of investment attraction. On the other hand, Villa prices, so far, have plunged over 50 percent and will continue to fall with an average of 15 percent to 20 percent with individual decline ranging between 20 percent and 50 percent depending on the development", he further DETAILED. According the sources, billions of rupees of four Pakistani developers have stuck in Dubai property market leave alone the small investors. Dubai's reputed and favourite developers like Nakheel Corporation, Emaar Properties and Damac Properties have cancelled or suspended most of their projects due to poor buying environment. Major projects that had been cancelled included Dubai Exhibition City, Water's Edge and Dolphin Towers (Damac properties), Nadra tower (Business Bay) and many others. "It is anticipated that this property crisis will continue at least for another 6 months and small investors could lose more of their investments because the prices are going down on a daily basis", expressed Khurram Raza, a real estate broker in Dubai. He further said that the property boom has taken a U-Turn and there is no appropriate relief visible in the near future. Without bailout packages, it is really difficult to expect a developing business environment. Furthermore, Pakistani investors have suffered losses of tens of millions of rupees in Dubai property market. Due to a large population of Pakistanis living in the UAE and a strong Pakistani community, the amount of investment there is also huge. "In boom period of property business, most of the local purchasers made investment in Dubai property market regardless of certain facts, market trends, price fluctuation and risk factors. Some people also got the benefit of growing real estate business but when it took the U-Turn, most of them got trapped. Real estate brokers misguided the ignorant buyers and because of it, they are repenting now", said a victim of present property disaster. Meanwhile, differences in asking prices between areas, unit types and quality are being noticed as sellers struggle to attract interest. 'The Dubai real estate market began to show signs of slowing in third quarter of 2008 while 4th quarter saw more deceleration and a correction across all segments of the real estate market, said sources. According to a report, residential prices in Dubai peaked in October 2008, but fell through to December, and continue to fall now due to global financial crisis. "Assuming that the current downturn will affect prices in line with historical average of 35.5 per cent, Dubai's average price floor will fall from a peak Dh1,556 to Dh1,000 per square foot." Units previously having price tag of Dh800,000 is now being sold in Dh500,000. Villa of range close to Dh13 million is now available against Dh4.5 million which is not even half of the peak time price. Moreover, a research available online revealed that the increased availability of housing, and properties from those investors unable to sell placing their units on the leasing market, rental rates, and therefore returns, are likely to continue dropping as the year progresses. The current estimates place the estimated decrease in rental at an average of 25 percent for both apartments and villas, although analysts are awaiting the next update due to the city's Real Estate Regulatory Authority's rental price index, against which contracts are to be measured.