Dubai Villa Prices Down By Up To 50% In Some Luxury Developments.

The Dubai freehold real estate property boom saw prices all across the board increase a huge amount, residential or commercial, villa or apartment: all property witnessed incredible returns for investors. However one area saw returns that exceeded the already large premiums being generated throughout Dubai, and that was luxury Dubai villas! With the limited land available within Dubai, villas are always going to be a sought after commodity. Providing a great life style, and being particularly suitable for families, villa prices started to increase quickly and it was not long before 200% premiums on homes were being seen. Areas like the Palm Jumeirah with its Signature Villas and Garden Homes, and Emirates Hills were all commanding large prices tags when coming to market. But even with such luxury and much sought after property, things can only go on for so long before it all becomes too much. Well with the Dubai real estate downturn and then world financial crisis, that time is now.

Dubai based property broker AAA has just announced that homes in some of Dubai’s luxury freehold villa developments have recently seen prices drop some 50%! Why such a big drop? Well what comes up must come down, and prices at such development certainly went up! The main reason seems to be down to speculators. Having seen the price of their properties rocket, with the market taking such a swift turn for the worse, they are now desperate to cash in before prices drop even further, cutting into their profits. This seems to be affecting both ready and off plan properties, with Jumeirah Park, Jumeriah Islands and The Palm Jumeirah all seeing large drops. With no stable going price for such properties on the market at the moment, sellers are continuing to drop their asking prices, and as such further price drops are being predicted.

Add in the liquidity problems that are not helping potential buyers in any way, and the results are the substantial price reductions now being witnessed. However for those that are able to obtain credit or are able to finance a purchase themselves, this does present a good opportunity. Compared to only a few months ago, villas here are now cheap!  With the future outlook of property here still very positive, wise investors will certainly be taking note.  

To advertise Dubai Villas with us please use the form on our website or the contact link on the right of this page.
 

• Rate this Post!

  Select Your Rating:

  • 5 Stars (Excellent!)
  • 4 Stars
  • 3 Stars
  • 2 Stars
  • 1 Stars (Poor)

• Share this Post

  Share With A Friend:

  Your Name Your Email

  Friend's Name Friend's Email

  Optional Message

  Send

• Print
• Social Bookmarking

  Add to Bookmarks: