Since the start of the property crash in late 2008, prices have now fallen by nearly 70 percent in some parts of the Palm, though across the development the average drop is believed to be closer to 40 percent.

In May this year the Arabian Business Think Tank forecast that prices on the Palm Jumeirah will plummet another 20 percent in the next year. It predicted that average prices for an apartment on Nakheel's man-made island will fall to just AED1,022 per square foot by May 2011.

Meanwhile the latest data from real estate consultancy Colliers said that house prices across Dubai fell by four percent in the second quarter, according to the latest data from real estate consultancy Colliers.

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