Monday, November 24, 2008

Palm Jumeirah property prices plummet 40 percent

Inflated property prices on the Palm Jumeirah have plummeted 40 percent, real estate brokers reveal.

However, villas and apartments are still selling at prices higher than original. Most property owners are hurrying up to sell their properties, said Robert Macnair, Sales Director, Elysian Real Estate.

The urgency could be due to the fact that there is a large payment coming up, or the market has dropped over the last few months. The Executive Director of ETA Star, Abid Junaid, said that the current downturn is a reflection of the market correcting itself, and this is a good thing, with the prices getting more realistic.

However, in the opinion of Amlak, the mortgage lender, it is temporarily halting new mortgages and rubbing salt in the wound. This could prove counterproductive, as this is the time to channel more funds into mortgages so that end-users can purchase, said Junaid.

According to few analysts however, this scenario does not reflect the sliding property market. Others are confident that it is a temporary condition, which is likely to be resolved soon.

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