The property market of Palm Jumeirah has endured a bit rough year during 2018; as a new study released by Savills concludes, the apartment prices of the area have fallen by around 9.5% within the last year.
Palm Jumeirah, which is considered one of the most popular residential areas in Dubai, was not the only district to endure a price drop in 2018. As the report showed, the apartment prices fell by 16% in Downtown Dubai and 12% in Burj Khalifa. Meanwhile, areas like Dubai Marina and Jumeirah Lake Towers, have witnessed a 5 – 7% drop in their apartment prices in the same period.
The case for the more luxurious segment of villas, on the other hand, was not so different; in Arabian Ranches, the villa prices decreased by 9% while they were diminished by 12% in Meadows and Palm Jumeirah.
Savills attributed the downfall in the residential sector performance in Dubai to the correction phase through which the market was going through in 2018 as well as the completion of multiple projects that have been launched between 2014 and 2016 which increased the supply level of the market while the overall low performance of the global trade has caused even more pressure on the demand level of the market.
The report also added that the homebuyers and investors are increasingly preferring to wait as they believe that the prices will continue to drop, which has led in part to the overall property deals to drop by 22% in 2018.