It added that Dubai’s residential sales market has softened steadily by a compounded average of 1.2 percent per month for apartments, and 0.7 percent for villas since then.
The report, however, said it expects a return to growth as Dubai gears up for Expo 2020.
It described the drop in prices as a "healthy and positive market adjustment" after the strong growth numbers which were posted in 2014.
Giving reasons for the softening prices, the Core Savills report citing several external factors such as regional instability issues and global macroeconomic concerns.
In particular, a Chinese crackdown on capital outﬂows, Russian sanctions and the falling ruble, the appreciating dollar and overall Euro Zone issues are mentioned as making their mark on Dubai’s residential market.
Core Savills said Dubai is in a better position today to absorb external economic shocks than it was in 2008 when part of the residential market saw prices crash by more than 50 percent.
The report also said Dubai's office space sector will remain stable, with a "steady growth forecast and greater choice for tenants as the city continues to be well positioned to offer companies a competitively priced choice for investment and growth".
Commenting on the research, David Godchaux, CEO of Core Savills said: "Through our research, we are confident that the residential sales market will return to growth during 2016 after a period of healthy price decline. An adjustment, however, does not mean crisis - on the contrary, a healthy softening is what Dubai really needs to give renewed confidence to long term investors that the real estate market has matured and gained more depth and liquidity.”