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
By Ed Attwood
Thu 04 Aug 2011 08:13 AM

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.”

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