A report by Asteco on the Dubai property market in the second quarter of this year has concluded that some residential areas may have already hit the bottom of the pricing cycle.

Across the city as a whole, average prices continued to fall during Q2 2009. Prices for apartments fell by -15% (to approximately Dhs900 per square foot), compared to Q1, while villa prices fell by an average of -13% (to approximately Dhs980sq ft), according to Asteco.

In addition, rents in Dubai continued to fall in most areas. Lease prices for apartments fell by an average of between 16-26%, compared to similar properties in Q1. Rental prices for studios fell the most on average, at -26%. Average rents for two and three-bed apartments fell by almost -19%.

The commercial sector didn’t fare any better, with average asking prices for office spaces falling by -24% over Q2 to Q1.Rental prices also dropped, as landlords saw an increase in supply coming onto the market combined with a slow down in demand. Average annual rates fell by -20%, although the report noted that with Dubai Metro due to come online in September, areas serviced by the route - such as Sheikh Zayed Road properties - would see increased stability.