| 13 December, 2017

Dubai property resurgence: Mega deals light up the Palm this year

There was a penthouse sold for Dh102m and another that fetched Dh84.2m

A general view of the Palm Jumeirah neighbourhood in Dubai.

A general view of the Palm Jumeirah neighbourhood in Dubai.

REUTERS/Karim Sahib/Pool
Dubai: A penthouse deal for Dh102 million, another for Dh84.2 million and a third for Dh67 million — with these kind of transactions Palm sure has been hitting the sweet spots this year, according to Luxhabitat states.

These came at a time when investor demand within Dubai’s broader property market was principally for mid-market offerings or those deemed as “affordable luxury” and backed up by quite favourable payment terms. (The penthouse sold for Dh102 million is part of Omniyat’s Palm The One project.)

So, why is it that the Palm has seen a “resurgence” of interest, and particularly since the third quarter? One reason could be that there is far more of off-plan investment opportunities available on the island than in the last two years. There was Seven Tides which launched Se7en Residences The Palm, a 14-storey twin-tower complex that would add a substantial 1,066 units. Units start at Dh752,000 for studios and Dh1.03 million for the one-beds.

Such projects, including those by Azizi, meant they are creating slightly more affordable pricing options on the island.

For instance, Knight Frank lists a villa on Frond M for Dh37m and another on Frond) for Dh11 million. And demand up the value chain will always be there irrespective of the market situation.

According to Joey Elaty, Luxhabitat’s Senior Advisor for Palm Jumeirah, “What buyers are snapping up are well-priced garden and signature villas, plots if there are any left, and well-positioned custom-built villas. (The project) XXI Carat is a great option for a new development in the area.

“The Palm is going through a resurgence of interest … and reasons include the fully developed master plan and the fact that seafront living is available only here. There has been strong demand for plots considering just about all are snapped up. Some properties have actually gone up in value in the past year on the Palm.” (This year, Luxhabitat’s costliest Palm transaction was a penthouse, at Dh18 million.) “Right now, there are many good options for off-plan on the Palm, including many projects of different styles and finishes,” said Elaty. “With the introduction of Nakheel’s towers (Palm360 and Palm Beach Residences), it would give buyers a new choice to the mix.”


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