Dubai property prices up 7 percent

Real estate prices in Dubai climbed 7 percent in the third quarter of 2009, from AED949 to AED1,016, the first rise since the market crashed late 2008, according to property consultancy Colliers International. Apartment prices jumped 6 percent, while villas rose 9 percent and townhouses 7 percent.

It also noted a 64 percent jump in market transactions during the same period.

However, property prices remain 47 percent lower than their peak in 2008, and are as low as prices recorded in the second quarter of 2007, the consultancy said in its quarterly report.

“The third quarter results indicate a ‘bounce’ in the market but we will have to wait for the fourth quarter results before we can say whether an underlying growth profile exists, indicating a potential recovery,” said Ian Albert, Colliers International regional director in Dubai.