The Dubai property market has experienced a summer slowdown after total residential transactions fell 45% year on year, from 2,649 transactions in Q3 2010 to 1,459 in Q3 2011, according to a report from CB Richard Ellis.

Matthew Green, Head of Research & Consultancy for HSBC Middle East, said: “The low number of completed deals, typified market performance in what turned out to be a very passive quarter.”

Also in the report it was stated that the opening of the new Green Line on the Dubai Metro will lead to stabilization of rents and an increase in occupancy rates immediately surrounding operational stations as “occupiers look to exploit the convenience of key public transport nodes.”

However according to Mohammed Faheem, Senior Research Analyst at CBRE, there is limited supply and a higher demand for villas in Dubai than apartments which have enabled villas to outperform them.

Faheem said in the report: “Villa properties continue to outperform apartments as the more limited supply and strong demand for high end properties impacts overall performance.

“Despite this, average rental lease rates (for villas) have dropped by 10% year-on-year – around half of the average decline for apartments (19%) during the same period. The most significant fall was in the two-bedroom apartment category at 26%. The lowest drop was for five-bedroom villas at just 2%, reflecting the fundamentals at play and the relative oversupply of small villa/townhouse units in developments in Jumeirah Village and the Mirdiff area.”