According to HSBC, property prices in the United Arab Emirates (UAE) increased in April and May.

Prices in Dubai and Abu Dhabi rose by +4% in April compared with March and 5% in May, but HSBC warned that it was too early to call it a trend.

A survey of brokers by the bank also confirmed that prices have started to stabilise on the back of renewed interest and sellers pulling their properties off the market of putting them up for lease.

However, compared with the peak in the market last September, property prices are considerably lower as agreed prices are down by -23% and asking prices were -65% lower.

However compared with the peak in the market last September property prices are still considerably lower. Agreed prices are down 23% while asking prices were 65% lower.

The result is a lot of price confusion in the regions real estate markets. Panic selling by Dubai property speculators is driving prices down, eroding confidence and making banks reluctant to lend, according to Mohammed Nimer, CEO of MAG Group Properties.

He believes that a mass sell-off by speculators has contributed to Dubais housing crash. Speculators were originally responsible for driving property prices to unrealistic levels. Now, although they are on the receiving end of the slump in prices, they are still blighting the real estate landscape by panic selling and undercutting the fair market price, he said.