House prices in Dubai have witnessed a slump of 9% in the second quarter due to property downturn amid the global financial crisis.

Prices in the Gulf emirate had declined 41% from the fourth quarter to the first quarter.

The sources said that market transactions in the second quarter grew by 50% over the first quarter due to increased financing options for buyers, mainly for completed or nearly completed properties.

The sources further added that the tighter mortgages and loans rules, expatriate job security fears, and concerns about project delays still hamper the market's recovery.

As per latest media reports, prices will fall a further 20% in the second half of the year.

Year-on-year, prices have witnessed a dip of 48% in the second quarter, putting property prices back at the same levels as the second quarter of 2007.