House values rise in Dubai

Real estate in the UAE and particularly property in Dubai, has been receiving some hard to swallow news over the past months, but a report released by Colliers International this week shows a shard of light in the darkness.

Their report, a closely watched index of Dubai property, has shown that the value of Dubai homes actually rose 7% in Q3 compared to Q2 of 2009, the first rise in values seen since the global economic crisis took a sledgehammer to the market. Areas of Dubai where foreigners have been permitted to buy have overall been locations crucial to the boom of previous years.

Colliers index focuses on market data from local and international lenders, specific to these areas. Whilst much of the news is focusing on harder times ahead in 2010 for the city, this nugget of positively charged data will be a warm welcome to investors. However, dropped from a height, even a stone bounces once & this is not necessarily the beginning of the end.

Investors have to think longer term than usual before seeing returns, even with current price levels being so appealing.