Freehold property sale stabilises in Dubai: Report

DUBAI: Sale prices in a number of freehold communities across Dubai remained stable in Q3 this year compared to the previous three months, a new report has said. According to the Dubai-based property management company Asteco report, further price adjustments are expected in the near future.

The rental market in Dubai has followed much the same pattern as the sales sector with price shifts favouring tenants. "Asteco has recorded an average drop of 6 per cent for [apartments].

This is mainly attributed to the increasing supply of apartments. 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," said the report.

The villa rental market fared slightly better with average declines of just 4 per cent over Q2 on the back on increased stock coming on the market in out-of-town developments. Despite demand for townhouses and smaller villas picking up speed a trend Asteco expects to continue in the short-to-medium term during Q3.

"There has been a change in focus in the real estate sector as maximising 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.