Reidin consultancy has revealed its latest statistics for the Dubai villa sales segment. According to the report, Palm Jumeirah man-made island alone saw 61 villa sales transactions worth USD 255 million in total from January to October.
However, the psf elite property cost for Palm Jumeirah villas declined by an average of 16.4% in a year, form USD 814 psf to USD 680 psf, according to Luxhabitat. The consultancy also added that it predicts another prices upturn for these villas over the next 18 months, due to a "renewed interest and increased retail options to be ready before 2020".
Anne Ogilvie, a specialist in Palm Jumeirah luxury sales at Luxhabitat, said: "The decrease in prices per square foot at the Palm Jumeirah is reflective of the natural correction of the market. There are, of course, sellers waiting for the prices to drop, but what we are looking at really is a plateau in prices."
Palm Jumeirah villa sales accounted for 37% of all nine months villa sales transactions in Dubai. Arabian Ranches was the second most popular villa sales area with 51% of all Dubai villa sales this year.
Ogilvie also claimed that a demand for quality property and land plots on Palm Jumeirah will be formed largely by those high net worth individuals making the island their second or even third home.
"These end-users look to buy plots on the remaining unbuilt fronds in order to build 'super villas', akin to those in California or Miami. We expect a sizeable number of them to build and then introduce them to the secondary market," she said.