Palm Jumeirah Full 2018 Market Report (Incl Q4 2018) & 2019 Outlook

2018 Palm Jumeirah Full Breakdown (With 2017 Comparison)

Total Volume of Sales: 672 (22.5% Less than 2017)

Total amount of Sales (AED): 2.49 Billion AED - (3.55m AED in 2017)

Apartments: 588 (25% Less than 2017)

Villas: 51 (34% Higher than 2017)

Land: 33 (50% Higher than 2017)

Most Expensive Villa Sold : 56m AED (2017 most expensive villa was 80m AED)

Most expensive Apartment Sold : 47.046m AED – Palma Couture ( In 2017 was 102m AED at "One by Omniyat”)

Average Price per SqFt for a Palm Property - 1,614 AED Per Sqft

Maximum Price Per SqFt Paid : 5,900 AED a Sq Foot

Average Property Size Sold - 1,625 SqFt

Top 3 Notable Sales From Myself 2018

* Garden Home Villa - Mid Number - O Frond - 4 Bed Central Rotunda - 8.8m AED

* Fairmont Residences - 3 Bed C Type - Upgraded - 6.65m AED

* Marina Residences Building 2 - 3 Bed B Type - Mid Floor - 3.35m AED

Above Stats taken from REIDIN

Below is a breakdown of each quarter of 2018.

2018 Q1 (Jan -March 2018)

SALES TRANSFERS

Total Transfers: 138

Apartments: 122

Land: 9

Villas: 7 (4 garden homes / 3 signature villas)

4 garden home transfers at the following prices: 9.1m AED 10.2m AED 16.2m AED (Custom Built) 10m AED

3 Signature Villa transfers at the following prices: 19m AED 13m AED 15m AED

Most Expensive Property sold: 19m AED (Signature Villa)

Most Expensive apartment sold: 11.7m AED (4 Bed at the FIVE Residences)

2018 Q2 (April - June 2018)

SALES TRANSFERS

Total Transfers: 169

Apartments: 153

Land: 4

Villas: 12 (4 garden homes / 7 signature villas / 1 Townhouse)

4 garden home transfers at the following prices : 9.75m / 12m / 12m / 10m

Signature Villa transfers at the following prices: 20m / 18m / 24.56m / 40m / 18m / 56m / 18m

1 Townhouse: 4.5m AED

Most Expensive Property sold: 56m AED (Signature Villa)

Most Expensive apartment sold: 18.5m AED (FIVE Residences)

2018 Q3 (July - September 2018)

Palm Jumeirah Market Report

SALES TRANSFERS

Total Transfers: 134

Apartments: 100

Land: 16 (Land / Plots / extensions)

Villas: 18 (8 garden homes / 9 signature villas / 1 Palma Townhouse)

8 garden home transfers at the following prices (Million AED): 9m / 6.575m / 11.4m / 11m / 11.4m/ 8.21m / 11.65m / 10.36m / 9m

Signature Villa transfers at the following prices (Million AED): 25m / 11.2m / 28m / 30m / 34.25m / 22m / 22.8m / 14.2m / 32m

Palma Townhouse: 8.5m AED

Most Expensive Property Sold: 34.25m AED (Signature Villa)

Most Expensive apartment sold: 21m AED (8,508 Sqft)

2nd most expensive: 5 Residences – 4 Bed 10.6m AED

2018 Q4 (October - December 2018)

SALES TRANSFERS

Total Transfers: 196

Apartments: 178

Land: 3 (Land / Plots / extensions)

Villas: 15 (12 garden homes / 3 Signature villas)

12 garden home transfers at the following prices (Million AED): 10.3m / 11.3m / 10m / 8.275m / 8.15m / 12.25m / 10.1m / 8.8m / 9.9m / 9.35m / 10.5m / 6.65m

3 Signature Villa transfers at the following prices (Million AED): 22 / 22 / 13.4

Most Expensive Property sold: 47.06m AED (Palma Couture Apartment)

Most Expensive villa sold: 22m AED

Quarterly stats taken from Reidin and Property Monitor (Please note there may be some discrepancies)

2019 Outlook

Most advisers can only guesstimate what is actually going to happen because several things can affect the course of any market. However one underlying theme that is always constant & one that will ascertain which way a market is heading. That constant is sentiment. Sentiment can be described as the way the public feels about how things are going on in their lives, their job security & their finances. These will determine if they spend more or not.

PRIMARY AND SECONDARY MARKETS

The primary market has had decent results this year with around 30 % of all transactions being off plan on the Palm Jumeirah. It will be interesting to see if this trend will continue as the majority of off plan sales on the palm in 2018 were for the more affordable projects that are now coming to an end.

The secondary market as with previous years has had over 85% of properties sold being apartments. Over 70% of these apartment sales have been in the affordable category of 1 to 3m AED. Prices have gradually dropped in 2017 for both sales and rentals, with a drop of 10-15% for both sales and rental prices with different developments fairing better than others.

Construction around the Palm has had a negative impact overall with both the noise and traffic levels, altho the majority of developments including the mall and residential / hotels are planned to be completed this year.

Shoreline apartments still remains the most transacted property on the Palm Jumeirah in terms of sales and rentals.

The new custom built villas being completed on the G, H, I, J and N fronds have certainly impacted the villa prices, There has been a increase in villa transactions this year. Buyers with long term plans for Dubai see the villa prices now reaching very attractive levels.

The rentals prices for villas on the Palm has also seen a considerable decline in 2018 with garden homes renting as low as 320,000 AED.

With how Q4 2018 has gone and the level of interest shown in the first few weeks of 2019, prices are looking like they are bottoming out with more buyer enquiries being registered.

The Palm has had handover of a few new projects including Palme Couture, Soho apartments, Balqis Residences and Serenia Development, with the W residences and 'The 8' being handed over Q1 of 2019.

Nakheel has started on the new Palm 360 project aswell as the the new Royal Atlantis under way by the kerzner group, 'The one' by omniyat and the carat XX11 villas are also in full force in terms of construction, which is adding to the new Uber luxury developments being built in the Palm.

Concerns for 2019

One major concern for 2019 will be the supply.

Projects to look forward to in the coming years on the Palm are as follows:

Azizi Mina projects (One close to handover the other one later in the year)

Royal Atlantis (Under Construction early 2020 projected handover)

Palm 360 (Operated with Raffles Hotel - Early stages of development)

Balquis Residences – (Currently being handed over)

The 8 ( Q1 2019 completion expected, exclusively sold through my team @ Keller Williams)

Emerald Kempinski (Hotel Investment – Completed Q4 2018 with fixed returns for 5 years, exclusivity handled by my team at Keller Williams)

W Residences ( Completion Q1 2019)

22 Carat Villas (Near Completiion)

Seven Residences (Under Construction)

Palme Couture (Completed& for sale)

One By Omniyat (Under construction)

Palm Tower (Tie-up with St Regis & under construction)

RENTAL TRENDS

Rents have continued to slide in 2018, albeit at a slower pace than 2017. We will see the bottoming out by the end of Q1 2019. Although some developments on the Palm have already stabilised since Q4 2018.

On average they have dropped 30-35% from the 2014 peak.

ANALYSIS FOR 2019 & BEYOND

Strengths & Opportunities:

• New Developments

• Mall Completion & Jumeirah Pointe (Amenities)

• More Competitive Pricing From Developers With Incentives (Post handover Payment plans)

• More End users

• 2020 will see completion of all Palm Projects - so supply will stop making a balance of supply and demand.

Threats & Challenges:

• Traffic issues & Congestion

• New Launches with many incentives (post handover payment plans, no DLD fess, No commission, free service charges)

• Over Supply

• Low Sales of Off Plan

• 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)

There you have it, feel free to contact me with any concerns & questions. I have a strong Palm Jumeirah team that can help buyers / sellers / Landlords and Tenants so do get in touch.

Please note the outlook and analysis is based on my own professional opinions and should not be taken as facts.