Shares in Emaar Properties dipped to a near 3-1/2-year low, leading to losses among Dubai's real estate firms as investors sold on fears over the sector's health during the coming months.

"There are worries that there will be a surplus in units and apartments on offer in Dubai within the next six months," says Samer Al-Jaouni, general manager of the Middle East Financial Brokerage Co.

Dubai's decision to restrict residencies for foreign property buyers means expatriates may hold off before investing in real estate in the emirate, Al-Jaouni says.

"This is affecting the real estate sector across the UAE," he says.

Shares in Emaar are down nearly 9 per cent, falling below 8 dirhams a share to 7.99 dirhams. Earlier, the stock dipped to 7.97 dirhams, its lowest level since April 2005. Union Properties lost 8 percent.  Dubai's benchmark index fell 5.54 percent to 4,429 points. - Reuters