Only Emi­rates Hills es­capes lux­ury area slump

7 Days in Dubai - - BUSINESS -

Dubai’s most sought-af­ter ar­eas are see­ing a sig­nif­i­cant slump in sales this year com­pared to the same pe­riod last year, ac­cord­ing to a new re­port.

Core Real Estate charted trans­ac­tions in the first six months of this year when mea­sured against H1 in 2015.

Core, part of global estate agents Sav­ills, ex­am­ined sales of vil­las worth more than Dhs10 mil­lion and apart­ments val­ued at Dhs4 mil­lion.

As 7DAYS re­ported yes­ter­day, on the Palm, prime villa sales slumped by 44 per cent, and over­all sales by 25 per cent.

In Down­town, the fig­ures were 36 per cent and 19 per cent. Emi­rates Hills, which con­tains about 600 lux­ury vil­las, con­tin­ues to have “elite ad­dress sta­tus”, with sales of Dhs10 mil­lion-plus vil­las ris­ing 45 per cent and over­all by 28 per cent.

De­spite the slow­down in sales, Core said the prime mar­ket has been “rel­a­tively re­silient” with prices sta­ble. Even the worst per­form­ing, the Palm, only saw sales prices drop by 4 per cent. De­spite slow sales fig­ures for Dubai Ma­rina, Core said it con­tin­ues to have the most en­dur­ing ap­peal. Al­though sales were down 25 per cent, prices have also dropped by 8 per cent in a sin­gle year, prompt­ing in­vestor in­ter­est.

David God­chaux, CEO of Core, UAE As­so­ciate of Sav­ills, said, “As ex­pected, head­line oc­cu­pancy lev­els are nearly 90 per cent in top per­form­ing tow­ers in Dubai Ma­rina and the prime rental mar­ket has re­mained rel­a­tively steady due to the con­tin­ued de­mand from ex­pats.”

Re­mark­ably, Ma­rina buy­ers and tenants with scenic sea views both typ­i­cally pay 20 - 30 per cent above the av­er­age price for the priv­i­lege.

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