Property market in the UAE 'will' grow

The UAE property market is going to make a strong comeback over the next few years, it has been claimed.

International property agency Chesterton made the prediction based on the emirate's improving economic situation, which is leading to an increase in investor confidence.

Robin Teh, director of valuations and research, has forecast that the property market in the country will grow at a rate of four to six per cent a year until 2015.

Mr Teh said: "Dubai is on its way out of the property slump and this is due to a rise in confidence within the consumer and financial sector in addition to a surge in transaction volumes."

However, he believes that despite the stabilisation seen in the market, the price of mortgages is slowing the recovery down, with interest rates tending to favour the lenders rather than the borrowers.

Premier Holidays recently reported a large rise in the number of individuals booking holidays to Dubai.