Property prices appear to be bottoming out in Dubai, brokers say, citing the increase in transactions in February that they say shows buyers are returning to the market.

Prices have fallen substantially since the end of last year, by as much as 50 per cent in some developments. The cost of flats in Palm Jumeirah have dropped to Dh1,000 a square foot from a high of Dh2,000 a square foot in July last year.

'Our transactions have increased by 15% in Feb 2009 compared to Jan 2009,' said Liz O’Connor, director of residential sales and leasing at Better Homes.

The National