20% Fall In Palm Jumeirah Prices
According to certain business leaders, the prices for properties in Palm Jumeirah are set to plummet by up to 20% over the next 12 months.
The special meeting of nine senior business leaders of the Arabian Business Think Tank has predicted that the prices for the apartments in Palm Jumeirah, which are apartments built by Nakheel, will come down to just AED1,022 in the next 12 months.
As compared to AED3000 per square foot in 2008, the average prices now stand at AED1200 per square foot. The reasons put forth by the member of ABTT for this fall in prices are the unwillingness by financial institutions to give approval to new mortgages and also the oversupply of property in the market.
Other aspects being predicted by ABTT officials at the lunch hosted by Andrew Neil, the ITP chairman, were gold prices, euro strength and even the regional stock market value.
Last month, Landmark Advisory said that the decline in property prices in the month of April was due to the excess supply of properties in certain prominent areas of Dubai.
The Dubai Lease Guide dated April 2010, from Landmark Advisory, said that properties which were faring well till date, like the Palm Jumeirah and Dubai Marina, also saw a 6% fall in the property prices due to this reason.
The property company went on to say that the average rent for two bedroom apartments in Palm Jumeirah had shown a 4% drop from AED115000 from AED 120000.