Nakheel developer, which is known as one of the leading developers in Dubai, marks falling of prices for real estate built on a unique man-made island Palm Jumeirah. Thus, the company reported that a luxury villa on the Palm Jumeirah, which Nakheel sold the day before that, was estimated at 28 million dirhams (7.6 million dollars), according to arabianbusiness.com
Luxurious villa on the Palm Jumeirah has 6 bedrooms and its total area is 4000 square meters. Villa was sold at an auction. The starting price set by the owner was 22 million dirhams.
As noted by the press of Dubai, currently on the Palm Jumeirah decline in prices per square meter, which began in 2008, is continuing to decline. In total in comparison with 2007 prices fell by more than 70%. The cheapest apartments that were put on sale this year were estimated at 1.7 million dirhams.
Demand for luxury villas in Dubai continues to fall not only on the Palm Jumeirah, but also in the whole emirate. In total fall in prices in Dubai reached 60%.
Local authorities during the last 3 years have unsuccessfully tried to align the situation in the real estate market of Dubai. Recent drastic measures of the emirate's leadership resulted in giving 3-year visa for living in the UAE for those, who buy property in Dubai for one million dirhams. Previously, such benefits were offered only for a period of six months.
Nakheel, in turn, is also trying to find ways to at least partially cover the losses from the protracted crisis. In particular, according to arabianbusiness.com, the company plans to privatize the beaches of the Palm Island in order to make villa and apartment owners pay for the entrance. Nakheel plans to create a special club, membership in which will allow to use the beaches and its infrastructure - gyms and sports fields.
Unstable political situation in the Middle East is one of the main reasons why investors do not hurry to invest in real estate of the United Emirates.