Palm Jumeirah Villa Prices
The total transaction volume for villas at Palm Jumeirah in 2015 was just 61 up to the end of Q3, so we’re not dealing with a very large stream of transactions. Palm Jumeirah Villa prices per square foot over the term have, it is estimated, declined by 16.4%. This is a considerable drop, but is a far better figure than the more than 50% drops seen in other sectors of the Dubai property market over the same period.
An analysis of data presented by Reidin and analysed by Luxhabitat suggest that Palm Jumeirah villa prices are showing more resilience than the rest of the Dubai property market.
Estate agents specialising in the luxurious Palm Jumeirah villa market state that there are properties for sale on the Palm, but buyers are waiting for prices to drop further.
In 2014 the average price for villas sold in Palm Jumeirah was AED 2,992 per sq. ft. In 2015 this price was at AED 2,499, which is still above the 2013 figure of AED 2,317 per sq. ft.
The villas are popular with wealthy Indians and Europeans, who use them as second or third homes. Rental on the Palm Jumeirah is still quite strong. It is estimated that upgraded villas on Palm Jumeirah can make up to AED 1m per annum.
Because much of the new stock in Dubai is in apartment tower blocks, the volume of villa sales tends to be dominated by a small number of developments. The most prominant of thes is Palm Jumeirah, followed closely by Arabian Ranches, both transaction in the region of 50 units during 2015. Other popular villa developments in Dubai include Emirates Hills, The Springs and Meadows, Jumeirah Islands and The Lakes.
Agents in Dubai are hoping that 2016 will lead to an increase in prices but, with a lot of stock coming to market, it is thought that this is unlikely. You can get a handle on Dubai Villa prices for 2016 on this post.