2017 Palm Jumeirah Stats
Total transactions: 212
Villas & Townhouses: 0
Total transactions: 208
Villas & TH: 17 (11%)
Apartments: 135 (85%)
Land: 6 (4%)
Total transactions: 192
Villas & TH: 12 (9%)
Apartments: 100 (76%)
Land: 19 (15%)
Total transactions: 258
Villas & TH: 9
Total transactions 2017: 870
Oqood: 327 (Majority apartments)
Total transactions in 2016: 849
Other Notable Stats Both Rentals / Sales prices have continued to decline over the last 3 Yrs.
Current Gross Yield on the Palm 5%
Most Expensive Property sold 2018 in Dubai - PJ Penthouse (One - Omniyat): 102m AED
Most expensive villa sold on PJ 2017 - 80m AED
Total Value of Palm Jumeirah Sales: $ 2.32 Billion
Most Expensive Property Sold By Me in 2017: 24.75m AED
Total Value Of Property Sold By Me in 2017 (Active for 8 months): 72m AED
Most advisers can only guesstimate what is actually going to happen because several things can affect the course of any market. However one underlying theme that is always constant & one that will ascertain which way a market is heading. That constant is sentiment. Sentiment can be described as the way the public feels about how things are going on in their lives, their job security &their finances. These will determine if they spend more or not.
PRIMARY AND SECONDARY MARKETS
The primary market has had a good run this year with around 40 % of all transactions being off plan on the Palm. Altho figures were close to over 60% in December. It will be interesting to see if this trend continues as the majority of off plan sales on the palm in 2017 were for the more affordable Seven Residences & Azizi projects.
The secondary market has not fared so well and continues to struggle due to stubborn sellers asking for unrealistic pricing & the introduction of newer developments both on and off the palm adding pressure to the older properties.
The new custom built villas being completed on the G, H, I, J and N fronds have certainly impacted the villa prices and can be seen in the general slow down in villa sales compared to 2016. The rentals prices for villas on the Palm has also seen a considerable decline in 2017 with garden homes renting as low as 340,000 AED.
CONCERNS FOR 2018
One major concern for 2018 will be supply.
Projects to look forward to in the coming years on the Palm are as follows:
Dream Residences (Been handed over for a number of years with slow sales)
Muraba (Handed Over)
Azizi - 2 projects (One close to handover the other one later in the year)
Serenia Residences (Close to comp)
Ananatara Residences (Handed over & still actively for sale)
Royal Atlantis (Under Construction late 2019 projected handover)
Palm 360 (Operated with Raffles Hotel - Early stages of development)
Balquis Residences – (Comp in the coming months)
The 8 (65% complete, early 2019 completion expected, exclusively sold through my team @ Keller Williams) Kempinski (Hotel Investment – Comp later this year, fixed returns for 5 years, exclusivity handled by my team at Keller Williams)
Alef Residences (Tie up with W hotels & resorts, comp later this year)
22 Carat Villas (Near Completiion)
Seven Residences (Under Construction)
Palme Couture (Completed& for sale) One By Omniyat (Under construction)
Palm Tower (Tie-up with St Regis & under construction)
Large number of projects to expect in the coming years along with hotels & other new developments. Fewer white-collar workers are coming to Dubai, adding to the downward pressure on sales / rents, and many people continue to find less job security as companies struggle to balance their books.
Rents will also continue to slide in 2018, albeit at a slower pace than 2017.
ANALYSIS FOR 2018 & BEYOND
Strengths & Opportunities:
• New Developments
• Mall Completion & Jumeirah Pointe (Amenities)
• More Competitive Pricing From Developers With Incentives
• More End users Threats & Challenges:
• Traffic issues & Congestion
• Over Supply
• Low Sales of Off Plan
• On-going Beach Issues with Nakheel
• 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)
There you have it, feel free to contact me with any concerns & questions. I have a strong Palm Jumeirah team that can help buyers / sellers / Landlords and Tenants so do get in touch. Thank you to Mario Volpi for his contribution. Figures are from DLD via Property Monitor.
Yasin Valimulla | Associate Partner Keller Williams Real Estate Dubai
M: +971 (50) 505-4135
E : firstname.lastname@example.org