Palm project bucks low price, weak demand trend

The company behind a major residential and hotel project being built on Palm Jumeirah in Dubai said on Wednesday it was bucking the trend of falling prices and weak demand.

Poznyakizhilstroy Corporation, the Ukraine-based developer building the Kempinski Palm Residence and Hotel, said it was on track for completion of the Residences by the end of 2009 and of the Hotel during 2010.

It added that the Residences had achieved some of the highest prices achieved for property on The Palm, with the 202 properties sold to date included 190 apartments fetching an average price of $2.3m.

Penthouse apartments have sold for an average of $6m with the grand villas reaching an average of $10m, the company, which operates as the Emerald Palace Corporation in Dubai, added.

The company confirmed that despite the global financial situation, no Residences buyers have cancelled and all buyers have paid all instalments.

The company also said that its other two projects in Dubai, the Kempinski Business Bay and the Kempinski Jebel Ali, will start construction during, early 2010, as planned.

Artur Mkhitaryan, president of Poznyakizhilstroy Corporation, said: "We have been well-placed to insulate our projects from the effects of the global liquidity crisis and are in a very strong position to conclude our projects. That means we are able to press ahead in 2009, at a time when many developers are slowing work on their major projects."