By Staff writer
New figures suggest massive hike in sale prices for apartments
Prices on Dubai’s Palm Jumeirah development may have risen by over 50% in the past year, according to research by Arabian Business.
Figures seen by the magazine show that average prices for apartments on the Shoreline are now around AED1200 per square foot – compared with a low of just AED795 per square foot a year ago. The biggest jump is in prices for two and three bedroom apartments. Even the Shoreline’s left side, normally considered cheaper because it does not overlook the beach, is commanding over AED1200 per square foot.
“You would do well to find a three bedroom for AED2.6m right now. A year ago you could find one for AED1.8m and negotiate downwards,” one estate agent told Arabian Business.
The average sale price in the iconic development rose by as much as 11 percent for three-bed apartments (AED3.9m) and five-bed villas (AED20m) during April-June, according to an analysis by property website dubizzle.
One-bed apartments (AED2.15m) also shot up 8 percent, while two-bed apartments (AED3m) rose 5 percent and four-bed villas (AED12m) were up 4 percent.
Average rents, however, remained unchanged for smaller apartments and rose only marginally for three- and five-bedroom properties and plummeted 9 percent for four-bedders.
Ludicrous, the 2008 vicious cycle all over again just from a lower base, but it will not be sustainable. As soon as people realise that a chance to buy on the Palm is not at rock bottom prices to offset the high service charges, then interest will tail off. At 795 AED per square foot it was a good deal up at 1,200 it's hardly worth it for quite old property in Dubai terms.
Oh dear, "staff writer" trying to fluff yet another PR article into news.
Arabian Business, please stick to journalism and leave analysing the property market to qualified experts (of which clearly your staff writer is not one)
what is this? you are comparing a low with the average to arrive at your 51%. Either compare the low with the low, the high with the high or, best of all, the average with the average. This basic flaw in your analysis gives this article absolutely no credibility and casts your headline of "prices rocket 51%" meaningless.
Arabian business always inflate the housing market value, rather they overvalue! Pls. Write realistic reports, so people are not misguided . Don't listen to the property speculators, because of them market collapse.