Property prices in several of the freehold communities across Dubai have remained stable during Q3 2010 compared to the previous quarter, according to a report by Asteco.

The report stated: “Asteco has recorded an average drop of 6% 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."

Despite demand for townhouses and smaller villas picking up speed - a trend that 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.

Elaine Jones, CEO, Asteco Property Management, said: "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."

The villa rental market has fared marginally better with average declines of just 4% over Q2 as increased stock has come onto the market in out-of-town developments, this is despite demand for townhouses and smaller villas picking up speed, a trend Asteco expects to continue in the short-to-medium term during Q3.