By Anil Bhoyrul
Sale prices slump to four-year low as number of apartments seen put on sale in past month
Sale prices on the Palm Jumeirah development have sunk to a four-year low, with apartments being offered for as little as AED650 ($176) per square foot.
Research by Arabian Business shows that a number of apartments on the Palm Shoreline have been put on sale in the past month with asking prices nearly 70% down from the height of the boom. The lowest listed price is a C-type apartment, occupying 2620 square feet, being offered for AED1.7 million ($463,215).
The revelation comes less than a week after the UAE government announced the extension of visa for real estate investors from six months to three years.
“The government took a raft of measures as part of its efforts to underpin economic growth within its strategic plan 2011-2013, including extension of visa for real estate investors to three years instead of six months,” the government said.
Presently, foreign owners of property worth more than AED1m are eligible to get a six-month visa, which needs to be reviewed every six months.
Dubai property prices continue to fall and political instability in the Middle East failed to give the market an expected boost, Deutsche Bank said in its most recent report.
Home values declined 1.2 percent in May compared with the previous month and rents fell by 1 percent, analysts Nabil Ahmed and Athmane Benzerroug wrote in a note to investors. Apartment prices slid 1.3 percent in May, while villas declined 1 percent.
“Despite talks of renewed interest in real estate following regional unrest, there is no visible sign of an improvement,” the analysts wrote. “Even if we believe the worst of the downtrend is now behind, new supply, lack of homebuyers’ appetite and anemic transaction activity point to further weakness.”
Prices are still too high! further reductions are urgently needed to fill up the empty palm..
developers should reduce mntnc charges by 50% atleast
The property crisis is nt over, this is just the start. The authorities have not yet delat with the main issues: DEVELOPERS ABUSES & LACK OF CLEAR LAWS proetcting investors. When that is done, then you will see prices stabilizing. The property market crisis will stay for another 5 to 10 years even if authorities start cleaning the mess today. otherwise, the market will never recover
Buy at the time of maximum pessimism and oversupply?$250,000 for a big Palm apartment is getting cheap - but then look at those six tallest-in-the-world residential towers coming up at the Palm-end of the Dubai Marina - Dubai apartments could still get a fair bit cheaper... villas on the other hand are going up in price because they are in short supply and exiles from Bahrain want them.
The only evidence offered for the attention grabbing headline is the price of one single apartment, without any consideration given to that data point being a possible outlier. Moreover, the "average" price is calculated using total square footage of 2,620 sq. ft. while C-Type Shoreline apartments are only 2,280 sq. ft.
For sometime, we are hearing villa prices are going up. Is there any statistics to substantiate this claim ? Anybody willing to put the money where their mouth is ?
This positive collapse has only just started to find it's legs. A ten year old property market doesn't have a normal cycle yet, so don't be fooled by the bulls that suggest the bottom is near.
Prices will continue to decline.. why invest in poorly built and shoddily maintained apartments and villas across all of dubai.
Mike, you should get yourself elected to the Owners Association and review the numbers for maintenance. You will see that some of these numbers are nothing more than hidden taxes. For example the slab rate for electricity is charged at commercial rates even though these are residential properties. In our two towers the electricity account is nearly one million dollars a year. There are other charges such as duplication of Dubai Municipality and Dubai Marina maintenance fees for looking after the Marina areas, so we pay twice, Emaar and developer contributions which lock in a fixed management percentage for services on top of the profits taken. Until RERA can exert some clout and finally approve Registration of Owners Associations so that Owners can control fees, then rates will remain high.
Hi Paul how are you? Planning any trips to the Emirates in London this season? Remember we were fans at the Paris 2006 event.
I agree that the bottom has yet to be realised as demand from Europe must be minimal in the current climate.