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Thu 4 Aug 2011 08:13 AM

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Dubai agents see luxury property prices on the rise

Sales up by “double or triple” in H1, Palm Jumeirah and Emirates Hills most popular areas

Dubai agents see luxury property prices on the rise
Properties in Emirates Hills and Palm Jumeirah are among those seeing an rise in value, agents said
Dubai agents see luxury property prices on the rise
Palm Jumeirah
Dubai agents see luxury property prices on the rise
While it may be the smallest of the three Palm islands planned for Dubais coastline, it remains the only one developed so retains the title it snatched in 2007 when the final breakwater stone was laid.

Statistics:

Development: The Palm Jumeirah

Location: Dubai

Work started: August 2001

Completed: October 2003 (land reclaimation)

Developer: Nakheel

Main contractor: Van Oord (land reclamation)

Designer: Nakheel

Cost: $12b

Size: 560 hectares

Nearest rivals: Palm Jebel Ali and Palm Deira, both still under construction. (Nakheel)

While
overall property values are still to reach the bottom, luxury property in Dubai
is already on an upward trend backed by higher sales, local realtors said.

One
agent pointed towards a “large increase” in the values of villas on the Palm
Jumeirah, while prices for Emirates Hills villas had appreciated by between 10
and 20 percent in the first half.

“We
have seen a definite increase the amount of AED 5,000,000 plus sales this year
especially those in the AED 15,000,000 plus category,” said David Terry, luxury
sales manager at Luxhabitat. 

“Various
properties across Dubai but mainly on Palm Jumeirah, Emirates Hills, DIFC, Al
Barari and in Dubai Marina have sold in this higher bracket in the past six
months.”

[To see Dubai's 10 most expensive properties, click here]

Terry
said that the number of sales in the first half “may even be as much as double
or triple” those seen in the same period last year.

Overall
Dubai property prices are estimated to have dropped by more than 60 percent
from their peak in 2008. Real estate consultants have warned of a two-speed
market, where prices for units in desirable and well-maintained areas remained
strong, while properties in distant areas with poor infrastructure will
continue to sink.

Another
agent said that high-end Palm Jumeirah values were "almost back to
pre-crisis levels", helped by speculative interest last year now
turning into firmer offers. 

“This
time last year, there were buyers looking for high-end properties, but they still
felt that the market had a ways yet to fall and these buyers were still looking
for good deals,” said Tom Bunker, investment sales consultant at Better
Homes. 

“Today,
those buyers are still around but now they appear to be buying as they feel the
market for high end properties has bottomed out and now is the time to buy.”

Research
conducted by Arabian Business in July showed that asking prices for
Palm Shoreline apartments – rather than villas - had dropped to 70 percent from
their peak
, to as little as AED650 per square foot.

However,
Carl Allsopp, the managing director of Allsopp & Allsopp warned sellers not
to raise price bars too high, too soon.

“There are certainly areas in Dubai where sellers are
demanding more money, but that is not say these are achievable,” Allsopp
said.  “Dubai has been a challenging
market for some time, and to expect an immediate recovery and for prices to
increase is unrealistic; in time most certainly.”

Grant Holt 8 years ago

Double or triple? Thats a big percentage difference, can they not be more accurate?

Or

That equates to one sale this time last year, and two sales done this year, maybe a third if the property he is oh so close to closing out goes through.

Al 8 years ago

almost back to pre-crisis levels ? Pleazze..

Lionheart 8 years ago

When will they ever learn !

Red Snappa 8 years ago

Sales double or triple same period last year, sales of those high end luxury properties were in the low single digits a year ago, if that. I suspect that it will take a lot more than that to make a market.

I cannot believe for one minute that prices are back to pre-financial crisis, Palm Jumeirah villas were changing hands for as much as AED 30 million in the early part of 2008.

As Mr. Allsopp says properties might be on the market at a slightly increased prices but that doesn't mean anybody will buy them at those inflated prices. There are many that think AED 500 + a square foot is where we're headed for luxury, AED 350 psq ft for mid-income and 175 psq ft for affordable.

You also have to remember nobody seems to be declaring the original buying price, vendors maybe attempting to raise asking prices but many will have bought at a premium on the secondary market. Only if you bought at the beginning of the off-plan cycle are you still making money.

John Thomas 8 years ago

Again another "rosy glass" view. I live in the Palm and there is certainly no movement on villas; that I can ascertain to. In my street alone there must be 25 empty villas (for sale) and nobody is looking at them...
One day all is rosy, the other day reality shows it ugly head on Dubai's RE, and teh sector expects to gain any investor confidence with this type of medis?? Tell the truth and work to fix the problem, and all these agents painting a non-realistic rosy picture are not helping...Good luck!

charles 8 years ago

Dont you just love the RE agents here. They do keep us all entertained and they usually give their interviews just in time for us to have a good weekend chuckle.

Realistic 8 years ago

Real estate agents in Dubai should not making comments like
(It's back to pre crisis prices) giving sellers false hope, the most sensible comments are from the last agent that commented which is realistic, no blue sky and flowers please agents......