2019 Palm Jumeirah Full Market Report For Ready Built Properties
Total Volume of Sales (Ready Built): 747 (11% Increase from 2018)
Total amount of Sales (AED): 2.828 Billion AED (13.5% Increase from 2018)
Apartments: 554 (6% Decrease than 2018)
Villas: 91 (78% Increase than 2018)
Land: 46 (39% Decrease than 2018)
Most Expensive Villa Sold: 54.79m AED(2018 most expensive villa was 56m AED)
Most expensive Apartment Sold: 33.694m AED – Palme Couture ( In 2018 was 47.046m AED – Palma Couture)
Average Price per SqFt for a Palm Property - 1,614 AED Per Sqft
Maximum Price Per SqFt Paid: 7,827 AED a SqFt (5,900 in 2018)
Average Property Size Sold - 1,040 AED a SqFt (1,625 in 2018)
Above Stats taken from REIDIN and does not look at off Plan sales.
The year 2019 marked a period of extended pressure on property prices and rents across communities in the UAE. However, it was also the year where the highest number of property transactions took place, surpassing levels of previous years, as investors and end-users increasingly recognize value amid early signs of stabilization.
A question still on the minds of many is whether we have seen the end of the correction. Indicators might provide mixed signals as we head into 2020, a year of exceptional significance to the UAE being the year Dubai hosts the Expo.
Whilst the event itself is expected to have far-reaching positive effects on the economy, government initiatives to address oversupply fears and encourage investments are doing their part to boost confidence in the economy.
From my personal experience of actively working on the Palm we are at or very close to the bottom of the market with sellers reluctant on accepting low offers, with very limited inventory of new properties coming on the market the Palm Jumeriah is one of the first areas in Dubai to show stabilisation. The addition of the mall opening and a number of new hotels in the pipeline will add to the attractiveness.
That being said we still have individual deals transacting at very challenging prices this is certainly not the norm or the benchmark for pricing the market.
Apartment Price Performance: Prices Declined by 7.7%
Villa / Townhouse performance: Decline of 18.1%
Average Rental performance: Decline of 13.1%
Projects to look forward to in the coming year on the Palm are as follows:
Azizi Mina project – Scheduled for handover this year
Royal Atlantis (Under Construction Q4 2020 projected handover date)
The 8 (Currently at the handover stage)
W Residences (Handover Q2 2020)
22 Carat Villas (Handover scheduled for 2020)
Palme Couture (Completed)
One By Omniyat (completion Scheduled 2020 / 2021)
Palm Tower (Expected handover Q4 2020)
ANALYSIS FOR 2020 & BEYOND
Strengths & Opportunities:
• Nakheel Mall Complete & Jumeirah Pointe (Amenities)
• More Competitive Pricing From Developers With Incentives (Post handover Payment plans)
• More End user buyers in the market
• 2020 will see completion of a number of Palm Projects - so supply will stop going forward making a balance of supply and demand.
· Expo 2020 visitor footfall
· Very Limited number of supply coming to the market, most of which is catered to the high end sector
Threats & Challenges:
• Traffic issues & Congestion
• New launches with many incentives (Long post handover payment plans, no DLD fess, No commission, free service charges) in other areas of Dubai.
• Over Supply in other areas
• New beach developments being built by Emaar / Meraas (More competition & Palm Jumeirah losing one of its main selling point as the only Beachfront Freehold area in Dubai)
· Large number of vacant retail units in Golden Mile, Nakheel Mall and the Pointe
Feel free to contact me with any concerns & questions of the report. I can also send you individual reports for developments if required. I have a full breakdown of each quarter of 2019 in the previous blog posts.
Additionally I have a strong Palm Jumeirah team that can help buyers / sellers / Landlords and Tenants so do get in touch with any enquiries.
Please note the outlook and analysis is based on my own professional opinions and should not be taken as facts.
Yearly performance has been taken from Cavendish Maxwell consultancy.
Associate Partner Knight Frank Middle East
M: +971 (050) 505-4135
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W : www.mrpalmjumeirah.com