Rental prices 'gradually rising' in the UAE

Despite expected price falls in the property market in the UAE individuals with real estate in the region will be bolstered by news that rental prices are rising and expected to remain strong.

A new poll conducted by Reuters has claimed that falls in overall property values could be expected of around ten per cent with recovery unlikely until 2012.

However, the market is experiencing a growth in rental values of homes with a 1.1 per cent increase seen in March for apartments and 1.3 per cent for villas during the same period, compared to the same timeframe last year.

"We probably underestimated, a year ago, the amount of migration from the other emirates to Dubai that has created a lot of demand," said analysts Nabil Ahmed.

Meanwhile, a report by property services company Asteco predicted that rates would remain stable as the year progressed.

Earlier this year, one of the largest developers in Dubai claimed that the property market in the emirate is over the worst and is ready to begin posting a steady recovery.

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