According to Colliers International’s House Price Index, there has been a 7% increase in the value of residential properties in Dubai between July and September, the first increase since the market fell. Property prices in Dubai returned to approximately the same level as those recorded in second quarter 2007 in September.

Apartment prices increased by 6% quarter on quarter, villa prices increased by 9% and townhouse prices increased by 7% compared to the second quarter.The overall volume of market transactions increased by 64% during the third quarter compared to the previous quarter.

“The increased availability of finance and a softening of loan-to-value ratios eased the liquidity concerns of purchasers. Supporting this demand is a perception of improved expatriate job security, excluding the real estate sector. In addition, the ability of purchasers to monitor the actual progress of developments has allowed for greater transparency regarding progress,” the Colliers report said.

While units in some developments and areas saw a severe drop in prices this year due to location and quality, others showed more resilience. Well-planned, mature developments in good locations complete with facilities and a good infrastructure will enjoy highest demand.