By Parag Deulgaonkar
Market dynamics, delayed handover, oversupply impact prices, says Land Sterling
Prices of properties in Damac’s Akoya development in
Dubai, which includes US President Donald Trump-branded luxury villas, have
fallen by up to 7 percent in 2016, according to local property consultants.
Earlier this month, Damac Properties chairman Hussain Sajwani, who was lavishly praised by Trump at his New Year’s Eve party, said he wanted to “enhance the relation with the Trump Organisation”. It was later confirmed that the then President-elect had rejected a “$2 billion (AED7.34 billion) development deal in the emirate”.
The Dubai-based developer has had commercial ties with the Trump Organisation since 2013 when it launched the Trump International Golf Club as part of its $6bn (AED22bn) Akoya development in Dubailand. The club is all set to open in mid-February.
Hamza Betraoui, managing partner, Land Sterling, told Arabian Business that the price declines in Akoya and Trump projects were in line with the general market trend.
“We have noticed a ‘slight’ decrease of 5 to 7 percent in villa prices within the Akoya project since launch. This is due to various reasons such as market dynamics, delayed handover and oversupply of new properties to the market,” he added.
The consultancy said 5-bed villas in Trump Estates - consisting of 100 luxury villas - are currently listed between $1.72m (AED6.3 million) and $1.77m (AED6.5 million). Separately, prices of Trump PVRT villas, a gated community overlooking the Trump International Golf Club, start at $1.77m (AED6.5m).
Data provided by Reidin.com also confirmed prices of villa and townhouses in Akoya development declined on average by 6.5 percent last year compared to 2015. However, no specific data was given on Trump-branded projects.
Damac did not respond to questions sent by Arabian Business.
Last week, Jesse Downs, managing director, Phidar Advisory, said it is “too early” to call a property price recovery in Dubai which would continue to be impacted by a strengthening US dollar, increase in cost of debt and sluggish regional economic growth.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.