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Palm Jumeirah Prices Fall by 50 Per Cent

DUBAI - Property prices on the Palm Jumeirah have fallen by over 50 per cent since September 2008 according to a report released by real estate firm PowerHouse Properties.

Four-bedroom garden homes on the Palm are now selling as low as Dh6.5 million, down from Dh14 million in September, report said.

Ian Hainey, sales specialist at the PowerHouse Properties said: “Palm signature villa prices have also fallen, with even the popular styles that were selling for over Dh30 million six months ago now appearing on the market for under Dh15 million.”

“However, there has been a noticeable increase in Palm Jumeirah buying activity during the month of January. Sales are still being made on the island, with an upsurge in those buying to rent, taking advantage of the bargain prices while still capitalising upon the high rental yields.

“Garden homes are renting at over Dh400,000 and furnished signature villas still commanding rents up to Dh1 million,” Hainey said.

Dubai-based mortgage advisor Jack Czechowski from propertyfinancelink.com explained: “There has been a marked reduction in people seeking to buy properties on the Palm Jumeirah, and therefore obtain finance, but this is true in developments throughout Dubai.

“It is difficult to make an accurate prediction on the immediate future, as Dubai has never faced this problem, but it is quite possible banks will review their policies early in the year,” he added.

aneela@khaleejtimes.com