Dubai home prices up for the first time since plunge

Dubai: A widely watched index of Dubai property prices shows home values edged higher for the first time since the market plunged.

But prices are still down nearly half from their peak a year ago.

The tally Tuesday by real estate consultancy Colliers International shows property prices in the third quarter rose 7 per cent over the preceding quarter. That is the first increase this year.

Prices, however, remain 47 per cent below their level a year ago.

Colliers bases its index on mortgage data from local and international lenders. It measures prices in parts of Dubai where foreigners have been allowed to buy since the market was opened in 2002. Those areas were largely responsible for Dubai's real estate boom.