The Palm Jumeirah Comes Down To Reality (U.A.E. Dubai Property & Real Estate)

When the Palm Jumeirah was originally launched it captured press headlines all around the globe and caused an international media storm with its daring new land reclamation infrastructure not seen before in Dubai real estate. No land reclamation project on such a scale had ever been attempted, and with its eye catching palm tree shaped design, buyers from numerous countries wanted to own part of such a groundbreaking and luxury project. With such international acclaim and strong buyer interest, prices at the development shot up in record time, with property at the development changing hands numerous times in rapid succession as investors tried to cash in on the large demand for freehold property at the Palm. Offering apartments, villas and townhouses, the Palm Jumeirah’s property proved a large hit, something aided along by numerous celebrities rumored to having purchased homes on the development. Add in some good marketing by developer Nakheel, and property at the Palm became some of the hottest real estate in the world.

But what goes up must come down right? Or at least it does when there is a global economic crisis taking place! And that is what is now being experienced at the Palm Jumeriah and throughout the Dubai property market in general. So how much has property decreased here of late? Well estimates put it at somewhere in the region of 50% in Q4 2008! Palm Signature Villas are reported to have fallen from AED 30 million to in the region of AED15 million in today’s market, with 4 bedroom garden homes seeing similar prices decreases, selling for around AED 6/7 million, down from 14 million not so long ago. And not so surprising is that such price decreases have got the bargain hunters circling already, with Palm villas still selling quickly despite the difficult credit situation at present.

The appeal goes beyond just the large decreases being seen in selling prices here. Whilst selling prices have seen large drops, rental prices have not been so largely affected, giving rise to a great investment opportunity for those wanting to buy to let. With Garden homes renting for over AED 400,000 and well furnished Signature Villas still expected to cost tenants in the region of AED 1 million, it is therefore not a huge surprise therefore to hear that that property on the Palm Jumeirah did brisk trade in January, as there is good long term investment potential here as with any other Dubai properties.
 

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