As real estate brokers specializing on just one area, The Palm Jumeirah, we have found things quite tough since the collapse of the booming market in late 2008. As prices hit bottom in 2009 we started selling again to end users and investors alike, which was encouraging, and prices even started to increase again. However, towards the end of ’09 the market began to stagnate, a situation which continued through 2010 with only sporadic sales and no real continuity. This changed towards the end of 2010 as we started to get busy again and the momentum has continued ever since.
2011 has seen a massive increase in sales activity on The Palm which I think is down to several reasons: prices are back to an affordable level for many people; the banks have started lending more aggressively again and the recent announcement that the government of Dubai is offering a 3 year residence visa for any property purchased at a cost of AED 1m or more. These things, along with regional problems in other parts of The Middle East, have once again highlighted Dubai as a safe haven for people to work, live and invest. The total value of transactions in Dubai in the first quarter of 2011 was AED 30 billion ($8.2bn), with 10,554 transactions, which is up by 20% from Q4 of 2010 and the highest value was on The Palm Jumeirah with 82 transactions worth AED 604m.
The main areas of activity
on The Palm have been villas first and foremost, followed by Shoreline Apartments, Tiara & Oceana and The Palm Residences (formerly known as The Fairmont Palm Residences). The Palm Crescent developments are starting to look good as well now, with One and Only Palm Jumeirah now fully operational, as well as Atlantis and the Jumeirah Zabeel Saray Hotel (formally known as Ottoman Palace). Residential projects on The Crescent are also coming available now with the beautiful Kempinski Residences already handed over, Taj Exotica expecting to hand over within 6 months and the Al Fattan Residences ready to move into as well. Add to these the Fairmont Kingdom of Sheba and Balqis Residences coming along nicely, The Crescent will soon be a much more attractive investment and place to live than is currently perceived for sure.
Posted by Richard Pemberton, Edwards & Towers – The Palm Villa Specialist
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