Dubai house prices rose 7% in the third quarter, marking the first increase since prices plummeted from their peak, Colliers International said.

'The third quarter results indicate a ‘bounce’ in the market,' Ian Albert, regional director at Colliers, said in an e-mailed statement today. 'We will have to wait for the fourth quarter results before we can say whether an underlying growth profile exists.'

In the past year Dubai, the second-biggest sheikhdom in the United Arab Emirates, became the worst performer after being the best out of 46 markets monitored in the Knight Frank global house-price index.