Real estate transactions in Dubai are forecast to contract by up to two percent in 2010 before stabilising further in 2011, a new report has said.

Kuwait Financial Centre (Markaz) said an upturn in the property sector would coincide with a return to population growth, which it saw happening only in 2011.

"The segment contracted in all metrics such as transactions, rentals and prices and is expected to contract further during 2010," the report added.