Colliers International revealed that the prices that rose 2 percent in the first quarter will be pressurized by the completion of a number of new homes in Dubai later this year.

Colliers estimated that 41,000 residential units will enter the market by the end of 2010. It is a global real-estate-services firm. Colliers shared that the house prices in the first quarter were on equivalence with 2007 levels, escalating to 1,061 dirham a square foot from 1,037 dirham, a year earlier.

Colliers’ Regional Director Ian Albert said, “There will be significant oversupply in the market by the end of the year, so it is anticipated the index will experience fluctuations in value going forward”. According to the document, demand is not expected to meet supply, which will create downward pressure on property prices.

Dubai’s property prices were at peak in mid-2008 as the financial crisis forced companies to dismiss workers, but they have dropped more than 50 percent since then.

In the first quarter, the apartment prices in the emirate boosted 6 percent as compared with the previous three months. Colliers’ house-price index revealed that Villa prices escalated to 2 percent while the cost of townhouses was melted down by 4 percent.