House prices will normalise in Dubai by the year 2010 as supply and demand begin to strike a balance, according to industry analysts.

"Into next year we expect prices to begin to moderate, though not substantially," Robert McKinnon, managing director of Al Mal Capital Research, was quoted as saying in a Gulf News report.

Blair Hagkull, managing director of Jones Lang LaSalle, Middle East and North Africa region, said better quality housing in central locations that are well maintained and have good infrastructure will always command higher rents in the future.

"Clearly, the rate of increase in the last five years, in terms of residential prices, is not sustainable. Rates have increased to a point where the price is a concern," Hagkull said.

Locations such as Barsha and Jumeirah Lake Towers and good quality accommodation with good links to public transport, will see the greatest rises in prices, he said.

Matthew Hammond, managing director of Jones Lang LaSalle said with the rising costs of materials, many developers have been forced to slow down development plans, thereby causing delays in the market.

"Properties that were due to come on in 2009-2010, have now been pushed back to 2011-2012," he said.