Tuesday, June 16, 2009

Dubai luxury properties shows positive signs after bottoming out

Prices of residential properties even in the best localities in Dubai, had hit the bottom, and are now once-again witnessing an increase of 20 to 40 percent, it has been revealed.

The Managing Director of Harbour Real Estate, Mohanad Al Wadiya, mentioned that recently an increase in activity has been noticed from potential buyers, who intend to purchase luxury properties, as prices are now hitting bottom. Iconic locations such as the Downtown Burj Dubai and The Palm Jumeirah are among the topmost in this revival list.

He revealed that last week, the company sold a single bedroom apartment at Downtown Burj Dubai (with Burj view) for Dh.2.1million, which was going out for Dh.1.7m to Dh.1.8m in December 2008.

The average prices for signature villas on The Palm Jumeirah was in the range of Dh.9mn to Dh.17mn during last December, but currently they are in the range of Dh.12.5m to Dh.19m, Wadiya said.

The Associate Director for Group Seven Properties, Jose I Murcia, said that luxury residential prices have stopped declining, but luxury commercial properties are continuing to slide. Locations such as Downtown Burj Dubai and The Palm Jumeirah are iconic, and with drop in prices, it makes an attractive proposition for buyers.

The Chief Operating Officer of Al Barari, Mohammed Zaal, agreed that prices have fallen in the luxury realty market, but not significantly. The prices have reduced by as little as 20 percent from their peak last year, as most of the demand for properties is from the end-users.

People intending to put money into high-end properties are long-term investors seeking to keep the investments even during recession. Such individuals do not require financial banking, and are willing to put forward anything required even if it means that they will get the level of quality they are looking for in their homes.

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