Business | Property
Villa prices rise in certain areas
Villa prices in "desirable" areas of Dubai are starting to creep up, a possible sign that the previous market panic is coming to an end.
- By Suzanne Fenton, Staff Reporter
- Published: 23:23 June 26, 2009
Dubai: Villa prices in "desirable" areas of Dubai are starting to creep up, a possible sign that the previous market panic is coming to an end.
Developments in certain locations, with high build quality and facilities are experiencing price increases, for example Jumeirah Islands and the Green Community.
Bernard Aoun, sales manager, Better Homes, said he has seen similar trends. However, it is being seen in specific areas of Dubai so is not an overall price increase.
"It seems that the worst may well be over for Dubai property prices. While many experts predicted prices to continue falling throughout the remainder of 2009, several communities have actually increased transaction prices in May and June from a month earlier.
In April, two-bedroom villas in The Springs were selling for Dh1 million, but are now going for Dh1.2 million. This trend can also be applied to other areas of Dubai.
Transacted prices show apartment prices, even on Palm Jumeirah have increased. In April, the average sale price was Dh3.57 million. This increased in May to Dh4.27 million. Jesse Downs, director of research and advisory services at Landmark Advisory, said sales prices are increasing, but this is dependent on the location of the property and the quality of the building.
"Prices are stabilising and in some cases increasing specifically for quality units in desirable locations. People continue to relocate within Dubai to get more value for their dirham and end-users are becoming increasingly sophisticated in their preferences. Location, views, amenities and infrastructure determine prices," Downs said.
Downs also said that distressed sales of properties in Dubai are largely over.
With more confidence infusing the market, sellers are no longer after a quick deal and are now refusing to lower existing prices.
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