Villa sales on the Palm Jumeirah in Dubai raised AED 938 million ($255m) between January and October this year, according to data by real estate tracker Reidin and an analysis by Luxhabitat.
The analysis noted that the residential market price per square foot declined by up to 16.4%, in line with the rest of the market over the past year.
“The decrease in prices per square feet at the Palm Jumeirah is reflective of the natural correction of the market. There are, of course, sellers waiting for prices to drop, but what we are looking at is really a plateau in prices,” said Anne Ogilvie, Palm Luxury sales specialist at Luxhabitat.
The price per square foot stood at AED 2,317 ($630) in 2013, while last year villas on the Palm sold at AED 2,992 ($814) per square foot.
This year the average price has dipped to AED 2,499 ($680) per square foot, and Luxhabitat predicts that villa prices will rise again in the next 18 months due to renewed interest and increased retail options by 2020.
The report concludes by saying that on observing the net change in prices over the last two years, the Palm Jumeirah has seen a 13% net increase in the price per square foot, thereby indicating that demand remains stable.