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.”
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