Bargain homes on Palm Jumeirah as prices drop 50%

palm-jumeirah-resort-746847The price of new homes at Dubai’s iconic Palm Jumeirah island are falling fast, offering some buyers the chance to grab a bargain at 50 per cent less than peak prices.

According to real estate broker PowerHouse Properties, four-bedroom garden homes on the Palm are now selling as low as AED 6.5 million, compared to AED 14 million in September 2008.

Dubbed by real estate commentators as the ‘eighth wonder of the world’, Palm Jumeirah instantly became a symbol of Dubai’s extravagant investment property boom when unveiled by developers Nakheel.

But a slowdown in real estate has even hit the highest points of the local investment property market, with some claiming prices dropped by eight per cent in the last quarter of 2008.

Ian Hainey of PowerHouse Properties said: “We’ve seen a steady stream of bargain hunters in the market shopping for these prestigious addresses, with many motivated primarily by price.

“Many end-users who previously could not afford to live on Palm Jumeirah are also now turning their attention to the bargains currently on offer.”

He added there had been a “noticeable” increase in real estate transactions for the scheme in January.

Many deals involved property investment buyers looking to rent, he said, with furnished signature villas still commanding rents up to AED 1 million.

One of the most ambitious real estate schemes in history, Palm Jumeirah is a man-made island in the shape of a palm tree off the coast of Dubai, famous for attracting celebrity buyers, including footballer David Beckham.

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2 Responses to “Bargain homes on Palm Jumeirah as prices drop 50%”

  1. Real estate market will improve.I am very confident about this.

  2. homebuyer says:

    For something that will be under water in less than 10 years, I would not even consider 6.5. With the current drop in housing to go 75% down from a year ago it’s only the ones holding on to late that are confident. I sold all in 2007, will buy back at one quater when its done.

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