Prices on Nakheel’s flagship Palm Jumeirah development have fallen to below AED1,000 ($272) per square foot for the first time since the fall in prices began late last year.
Several distress sales on the project have seen prices for 2 bedroom apartments, measured at just over 1,500 square feet, drop to AED1.4 million.
Some sellers are offering to off-load similar properties for just AED1.3 million.
The drop is, according to estate agents, being accelerated by the oncoming Golden Mile project, developed by IFA Hotels & Resorts, which is due for handover beginning next month.
There, many luxury two bedroom units at over 1600 square foot are being offered for AED1.5 million.
“The problem on the Golden Mile is that many owners are trying to sell their properties before hand over, and are now prepared to take close to what they paid for them in the first place. This has meant the whole Palm area is seeing prices depressed,” said one estate agent who asked not to be named.
Late last year, estate agents reported selling two bedroom units on the Palm for close to AED4 million – three times the current price.
The revelations come after a new report on Saturday stated that property prices in Abu Dhabi have dropped by up to 25 percent since peaking in the third quarter of last year.
The Abu Dhabi Real Estate Report, launched by Landmark Advisory, which looks at the price correction unfolding in both the freehold and leasehold market shows prices in the capital are now approaching their original figures – down 15-25 percent on the fourth quarter of 2008.
Meanwhile for properties being delivered later than 2011, average prices were likely to fall by up to 10 percent below the original, quoted in the second quarter of 2009, the report added.