Dubai property prices declined at a monthly rate of 1.7 percent in February, driven mainly by new supply, Deutsche Bank AG said.

Real-estate prices in the Persian Gulf emirate may face “further downward pressure” this year, the bank said in a research report dated yesterday.

“Although the pace of decline has reduced lately, we still do not see any improvement in fundamentals that could trigger a recovery,” the bank said.

Dubai home price slumped 62 percent from their peak in mid-2008 after the global credit crisis caused mortgage lending to dry up and speculative demand waned, Deutsche Bank said on Feb. 14.

In neighboring Abu Dhabi, prices slid 45 percent, Jones Lang LaSalle Inc. estimated.

To contact the reporter on this story: Alaa Shahine in Cairo at [email protected]

To contact the editor responsible for this story: Claudia Maedler at [email protected]