Prices of residential property at the top end of Dubai's real estate market have bottomed out

source Zawya

Prices of residential property at the top end of Dubai's real estate market have bottomed out and are now witnessing increases of between 20 and 40 per cent, a roundtable discussion between realtors and developers organised by Emirates Business has shown.

"Iconic" locations such as The Palm Jumeirah and Downtown Burj Dubai are at the forefront of this revival, they said.

"We are seeing increased activity from potential buyers who want to buy luxury properties, since prices are currently hitting bottom," said Mohanad Al Wadiya, Managing Director, Harbor Real Estate.

"Last week we sold a one-bedroom apartment in Downtown Burj Dubai with a Burj view for Dh2.1 million, which was going for about Dh1.7m to Dh1.8m in December 2008."

Average prices for signature villas on The Palm Jumeirah were in the range of Dh9 million to Dh17m in Dec-ember last year, but now are up in the range of Dh12.5m to Dh19m, according to Wadiya

Jose I Murcia, Associate Director, Group Seven Properties, said luxury residential prices have stopped declining, but luxury commercial properties are continuing to see a drop in prices. "Locations such as Down-town Burj Dubai and The Palm Jumeirah are iconic and with the prices falling it does make an attractive proposition for buyers," he said.

Mohammed Zaal, Chief Operating Officer, Al Barari, said prices have fallen in the luxury segment, but not significantly. "Our prices reduced by as little as 20 per cent from their peak last year, since most of the demand for our properties is from the end-users.

"People who are willing to put money into high-end, or luxury properties are long-term investors who want

to remain invested even during recession. These individuals do not need financial backing and are willing to put forward whatever is needed if it means that they will get the level of quality they are looking for in their homes."