According to Arabian business, Dubai, the Gulf business hub where property prices continue to decline, cancelled 217 property projects in the past two years. The Real Estate Regulatory Authority reviewed more than 450 projects and expects 237 of them to be completed "in due course," according to information contained in the Dubai government's bond prospectus.

The total value of property sale transactions plunged to US$ 32.6 billion at the end of last year from US$ 41.7 billion a year earlier. Residential property prices in Dubai, the worst-performing market in the Middle East for the past three years, haven't yet benefited from political turmoil in other parts of the region, Deutsche Bank AG said last week. Home values declined 1.2 percent in May from the previous month and rents fell by 1 percent, according to the bank. Apartment prices dropped 1.3 percent and villas lost 1 percent.

"Despite talks of renewed interest in real estate following regional unrest, there is no visible sign of an improvement," the analysts wrote. "Even if we believe the worst of the downtrend is now behind, new supply, lack of homebuyers' appetite and anemic transaction activity point to further weakness."