More UAE developers are announcing the scaling back of some of their projects as the global economic crisis continues to have an impact on the region.
Until now real estate officials have been wary about talking down the market and some have even publicly stated that property prices are not falling despite the evidence pointing to the opposite.
However with prices dropping 19% in some areas and even more in others, even key spokesmen are admitting that Dubai is experiencing a property price fall.
Opinions vary, however, over whether to call it a 'correction' or the beginning of a bust with most public statements edging on the optimistic side.
Palm developer Nakheel has admitted that it is affected. 'We will reassess our immediate business objectives to accommodate the current economic climate,' the Dubai-based developer said in a statement.
'The next few months will see a scaling back of activity around some of our projects. This will not affect our long-term business objectives and is a responsible approach in line with current global economic conditions,' it continued.
There was no mention of what Nakeel projects would be affected but it is a sign that Dubai is bracing for a much more severe slowdown in the property market than many will admit.
More than 80% of respondents to a reader's poll published today by Arabian Business readers said that they believe the worst is yet to come and 60% of those said they fear a major property price correction is just around the corner.
Some 63% of respondents said investors needed to be prepared for a major price correction in the real estate sector while another 22% thought more companies would be forced to cut jobs as the slowdown continued.