Dubai Sales and Rental Housing Prices Stable in Q3

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(DUBAI, UAE) -- Prices in a number of freehold communities across Dubai remained stable in the third quarter compared to the previous three months, according to the latest report by leading Dubai-based property management company Asteco.

The Asteco Dubai Q3 Report 2010 published over the weekend revealed that affordable apartment developments, such as Discovery Gardens and Jumeirah Lake Towers (JLT) remained at $136 and $204 per square foot respectively for the three months to the end of September.

For apartments "Asteco has recorded an average drop of 6%" the report stated. It went on to add, "However, we have also seen increased sales activity, predominantly due to owners who are expected to take handover of their unit but are unable to make the final payment, which often constitutes a large percentage of the overall sales price." This trend was also mirrored within Downtown Burj Dubai, which despite being at the opposite end of the price spectrum still commanded $354 per square foot throughout the same period.

Despite demand for townhouses and smaller villas picking up speed - a trend Asteco expects to continue in the short-to-medium term - during Q3 property prices in Emirates Hills, Jumeirah Islands and the Green Community remained unchanged.

"There has been a change in focus in the real estate sector as maximizing rental yields and long-term capital appreciation takes precedence over short-term sale profits, with pro-active property management being a key factor," said Elaine Jones, CEO, Asteco Property Management.

The rental market in Dubai has followed much the same pattern as the sales sector with price shifts favouring tenants. Despite an overall apartment rental contraction of 6 percent, units in JLT slid just 2 percent with 3 percent adjustments in Discovery Gardens and Downtown Burj Dubai.

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