2020 Palm Jumeirah Full Market Report For Secondary Properties
Total Volume of Sales (Ready Built): 620 (17% Decrease from 2019)
Total amount of Sales (AED): 2.654 Billion AED (6% Decrease from 2019)
Apartments: 387 (30% Decrease than 2019)
Villas: 110 (20% Increase than 2019)
Land: 38 17% Decrease than 2019)
Most Expensive Plot sold: 60m AED
Most Expensive Villa Sold 30m AED (2019 most expensive villa was 54.79m AED)
Most expensive Apartment Sold 40m AED – Serenia Residences ( In 2018 was 33.694m AED – PalmeCouture)
Average Price per SqFt for a Palm Property - 1,130 AED Per Sqft
Maximum Price Per SqFt Paid: 4,288 AED a SqFt (5,900 in 2018)
Average Property Size Sold – 1,879 AED a SqFt (1,625 in 2018)
2020 Palm Jumeirah Full Market Report For Off Plan – Oqood Registered
Total Volume of Sales : 502
Total amount of Sales (AED): 884,690,000 AED
Apartments: 58
Services Apartments: 442
Villas (Balqis): 2
Most expensive Apartment Sold 30.02m AED – One By Omniyat
Above stats taken from Reidin– Please note we do not take any responsibility for the authenticity of the figures.
2020 Review
The start of 2020 marked a period of extended pressure on property prices and rents across communities in the UAE including the Palm.
However, it was also the year where the Covid 19 virus impacted many which was evident between Q2 and Q3. However, Q4 proved promising with investors and end-users increasingly recognizing the current value proposition amid early signs of stabilization.
A question still on the minds of many is wether we have seen the end of the correction. Indicators from several consultancies provide strong signals that we have as we head into 2021, and is certainly evident on the Palm.
2021 is the year of exceptional significance to the UAE with it being the year Dubai hosts the Expo albeit delayed from last year.
Whilst the event itself is expected to have far-reaching positive effects on the economy, government initiatives to address oversupply fears and encourage investments are doing their part to boost confidence in the economy.
From my personal experience of actively working on the Palm we have certainly seen a shift in the market in Q4 with prices now rebounding. Villa prices have jumped around 30% in Q4 and apartment prices have plateaued.
A limited inventory of new properties coming on the market the Palm Jumeriah is one of the first areas in Dubai to show stabilisation. The addition of the mall opening and a number of new hotels in the pipeline will add to the attractiveness.
The freedom of movement that was possible on the Palm during Covid 19 lockdown as well as other villa communities where outdoor space has become more appealing than apartment living has all contributed to the positive outlook for 2021.
Upcoming Supply
Projects to look forward to in the coming year on the Palm are as follows:
Royal Atlantis – Knight Frank Exclusive Project (Under Construction Q3 2021 projected handover date)
W Residences (Handover Q2 2021)
22 Carat Villas (Handovers have started with nearly half the villas now occupied)
One By Omniyat (completion Scheduled Q1 2021)
Palm Tower (Expected handover Q4 2021)
ANALYSIS FOR 2021 & BEYOND
Strengths & Opportunities:
• Nakheel Mall Complete & Jumeirah Pointe (Including new World largest fountain show)
• Opening of the West Beach concept with restaurants an retail which has proven very popular.
• More Competitive Pricing From Developers With Incentives (Post handover Payment plans)
• More End user buyers in the market
• 2021 will see completion of a number of Palm Projects - so supply will stop going forward making a balance of supply and demand.
· Expo 2021 visitor footfall
· Very Limited number of supply coming to the market, most of which is catered to the high end sector
Threats & Challenges:
• Traffic issues & Congestion
• New launches with many incentives (Long post handover payment plans, no DLD fess, No commission, free service charges) in other areas of Dubai.
• Over Supply in other areas
• New beach developments being built by Emaar / Meraas (More competition & Palm Jumeirah losing one of its main selling point as the only Beachfront Freehold area in Dubai)
· Large number of vacant retail units in Golden Mile, Nakheel Mall and the Pointe which have yet to be absorbed,
Feel free to contact me with any concerns & questions of the report. I can also send you individual reports for developments if required.
I have a full breakdown of each quarter of 2020 in the previous blog posts.
Additionally I have a strong Palm Jumeirah team that can help buyers / sellers / Landlords and Tenants so do get in touch with any enquiries.
Please note the outlook and analysis is based on my own professional opinions with the help of analysing reports of other real estate consultancies. and should not be taken as facts.
Yasin Valimulla
Associate Partner Knight Frank Middle East
M: +971 (050) 505-4135
E : yasin.valimulla@me.knightfrank.com
W : www.mrpalmjumeirah.com