By Staff writer
Analysis of Jan-Oct transactions reveals that prices per sq ft have declined by up to 16% over past year
The total value of transactions for Palm Jumeirah villas in Dubai reached AED938 million ($255.3 million) for 61 villas sold between January and October, according to data by REIDIN.
Analysis by Luxhabitat showed that prices per square feet have declined up to 16.4 percent over the past year, mirroring the rest of the Dubai residential market.
Palm villas sold last year at a price of AED2,992 per square feet compared to AED2,499 per square foot this year, a statement said.
Luxhabitat added that it predicts the prices of villas on the Palm will rise again within the 18 months, due to a "renewed interest and increased retail options to be ready before 2020".
Anne Ogilvie, Palm luxury sales specialist at Luxhabitat, said: "The decrease in prices per square feet at the Palm Jumeirah is reflective of the natural correction of the market. There are, of course, sellers waiting for the prices to drop, but what we are looking at really is a plateau in prices."
Palm Jumeirah accounted for 37 percent of villa sales at prominent neighbourhoods this year with a volume of AED885 million. Together with Arabian Ranches, both neighbourhoods accounted for 51 percent of villa sales this year, the Luxhabitat report said.
"Property on the Palm is different compared to the rest of Dubai, the prices are relatively inelastic," said Ogilvie, adding that the Emirates Hills area has seen the biggest price per square feet declines since 2013 by 15 percent.For all the latest real estate news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.