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Fri 26 Mar 2010 07:52 AM

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Palm property prices still high compared to London, Paris

Another three to five years before prices start rising - Cluttons Middle East expert.

Palm property prices still high compared to London, Paris
(Getty Images)

Despite the fact that property prices on the Palm Jumeirah have slipped by 40 percent from their August 2008 peak, a local real estate expert has said that units on the Nakheel development are still overpriced.

"Prices on the Palm compared to global hubs such as London, Paris and New York still seem fairly high in my opinion," Cluttons Middle East's head of UAE residential valuation Chris Waight said.

Waight indicated that prices for incompleted units were down by 50 percent "if not more", and that rents were down by a quarter - comparing favourably to other freehold areas in Dubai.

"Based on the number of units due to complete over the next two years it is unlikely that prices will increase," the executive added.

"Despite the difficulties faced over the last 18 months the UAE remains a commercial nerve centre of the Middle East. After a period of consolidation of between three and five years, I expect prices to start increasing once again."

The Cluttons expert said that established areas such as the Springs, Meadows, Jumeirah Islands and the Palm had performed well historically and would continue to see a high turnover of transactions.

In terms of the Dubai World announcement on Thursday, the head of the real estate agent's UAE branch said that more information was required before a full assessment could be made of the affect on the local property market.

"In terms of impact on the market, it is too early to predict what effect this will have on property prices, but we hope it marks the beginning of a positive period for the UAE," Cluttons Middle East's head of UAE Steve Morgan told Arabian Business.

"Todays announcement is important for Dubai at a time when the world's eyes are focused on the city. We have every confidence that it will be handled correctly and help improve Dubai's international credibility."

Arabian Business: why we're going behind a paywall

JH 10 years ago

Who cares what this man has to say? What irrisponsible journalism. Why don't you give me a call for my personal views on real estate in Dubai? I have far more relevant knowledge and appropriate qualifications than a real estate agent. What trollip to compare The Palm to London and Paris. Seriously, what foolish and narrowminded low intelligence trollip. What is the comparison? Price only? Put some context into it Waight. I cannot believe you print an interview with anyone who you call to drumb up business. You may just as well have randomly interviewed someone in the street. Not enough news worthy of reporting at the moment? It is rubbish like this which is causing damage to Duabi. Shame on all of you. Did you bother to check where Waight gets the majority of his business or how long he has been practicing here in Dubai or what his true credentials are? I bet you didn't. Another fool offering an invalid and uneducated opinion.

John 10 years ago

Fully agree with the above article, the prices on the Palm are already going down and as more developments are being handed over in the coming months we can expect a serious correction. The Fairmont Residences are still listing properties at 2008 prices... People are trying to sell but little transactions. The only property worth considering might be Golden Mile, 2BR for AED 1.6m, that seems to be an honest deal, although, no facilities, no beach access... and therefore maybe still overpriced. Other areas where we can expct market corrections: Burj Dubai/Khalifa, Downtown area, Business Bay... Indeed Dubai is still expensive compared to London, Paris, New York... With the handover of 30.000 new units in the remaining of this year the market will see natural corrections.

Patrick Noohan 10 years ago

Tut tut JH, such rhetoric...and badly-spelled rhetoric at that! Get stung badly on the Palm did you? The writer of the article that you happily condemn is from a respected company. I notice you don't list YOUR credentials for such a strong rebuttal. I can only direct you to your own words, which could easily have been about yourself; "Another fool offering an invalid and uneducated opinion".

interested 10 years ago

Prices on the Palm ? prices of what drinks in the Atlantis ? I think everyone agrees with JH. Why don't you report that palm VILLA prices are up over 30% in the past 12 months ? ask any agent. Rents and sale prices are up on the shoreline by 30% since march 2009 FACT. The crash has come and it has gone, its all on the up again. Thats a fact ask the land department. Why compare DXB with London or Paris ? why not Miami or Sao Paolo or Palawan in Phillipines ? AB sometimes your behavior is bizarre and undermines the magazine completely.

Paul King 10 years ago

Respected company... What a joke! Respected by who? Probably all the people who like to purchase inferior quality property built on reclaimed seabed silt! Another circus performer trying to talk up the market for their own good... If your IQ is above room temperature then you very quickly realize that any self appointed expert comparing Dubai property with London & Paris is nothing of the sort!

Tristan de Ferluc 10 years ago

You want to assess the seriousness of such and such ? Just have a look at what they were saying 6 months, 1 year, 2 years ago and replace it in the context of each time. You will appreciate by yourself, with facts.

JH 10 years ago

I've never been a good speller and don't particularly care. Credentials - well that might give me away to too many but I will tell you I hold advanced western degrees in Urban Planning and Urban Economics and I hold a very senior postion within the UAE. My point was clearly not well made, despite my thoughts to the contry (probably spelt that incorrectly too but...I really don't care). Part of what I was trying to say is that I haven't seen any absolute beach-front property in London or Paris and their climates are quite different from The Palm's and The Palm is in Dubai...in fact a suburb in Dubai so why the comparison to megga cities with completely different contexts? What was being compared?? Why did AB bother printing the article? It made no sense and contributed nothing. In fact it was embarassing for them. Have I had a bad experience with The Palm? No. I just can't stand moronic (probably spelt that incorrectly too - AB - get spell check on your comments page for us gutter swill) rubbish promoted to headlines in my media email. Partick - you sound as if you work for Cluttons... Cheers to everyone. Marsalama

Pietro 10 years ago

Hey Patrick, pls don't open your mouth again - you are just making fool of yourself and the company you represent - i agree, you must be from Cluttons! Who is Cluttons to talk about the prices in the world compared to Dubai. And no, I did not buy at the Palm but if I did, people like you should be shot for creating such bad publicity for Dubai - Dubai is a great city and it will get back on the feet quicker than you think - even though people like you Patrick are trying your best to create such a bad image of this city for your own benefits... Why don't you go back to the UK and hopefully find a job there if you are lucky! And by the way, who are you to talk about spelling mistakes - don't you have anything more 'serious' to talk about rather than trying to put people down - at least they speak more than one language!!!!@@$$

pinkglasses 10 years ago

Guys, what are you talking about and comparing?! The Palm has a lot of constructional and architectural shortcomings, the environmental impact is a serious issue here and far from studied. It might be good for short term speculations, but definitely not for long term investment or residence. If the island sinks considerably, will the property owners there be obliged to bear the repair expenses, like they are in some other Dubai areas?!

Mart 10 years ago

Interested wrote: "The crash has come and it has gone, its all on the up again. Thats a fact ask the land department" I'm sure you had some folk going for a moment there! Its April 1st today folks. Enjoy.