UAE - Property prices on the Palm Islands have been rising since the opening of the Royal Atlantis, with some investors securing more than 100 per cent of the original purchase price of their units, according to industry experts.
The Royal Atlantis was inaugurated last month in a spectacular ceremony that captured the world's attention. Singer Beyoncé took to the stage with her daughter Blu Ivy, 11, in her first performance since 2018. The property features hotel rooms as well as residences.
"We are seeing a sharp increase in buying interest due to the upcoming handover period," said Lewis Allsopp, chief executive of real estate firm Allsopp & Allsopp.
"Some investors, depending on their location, have doubled their investment. This is due to several factors; obviously, market conditions are good and the launch of multiple luxury offerings around the area has given a new benchmark."
Last year, The Palms saw a renewed interest from investors around the world.
There is a reason for this, says Arash Jalili, founder and CEO of Unique Properties." He says: "Last year, The Palm Jumeirah was considered the favourite place for real estate investors in Dubai, with villa prices in the area rising by almost 50 per cent." This increase comes amidst an increased demand for beachfront homes combined with a shortage of new beachfront projects in established communities."
According to Jalili, prices are now the highest they have ever been." 'Dating back to the peak of the Covid-19 pandemic, villa prices have risen by almost 100 per cent, which is about 35 per cent higher than the peak in 2017,' he said." We have just brokered a deal for one of the most exclusive beachfront residences on the Palm Jumeirah, worth Dhs130 million, purchased by one of our international clients."
Interest in properties within Atlantis is also growing steadily, with 231 units in the Royal itself.
A luxury four-bedroom flat at the newly opened Atlantis Royal has been listed on search site Property Finder for a jaw-dropping Dhs60 million.
The beachfront flat boasts a 90-metre infinity pool and floor-to-ceiling windows on a balcony overlooking the sea and Palm Island.
"Investors in the UAE have an exciting new address to keep an eye on," said Scott Bond, UAE country manager for Property Finder." It's no surprise that we're seeing more investors seeking out The Palm Jumeirah as one of their preferred communities. According to our data, The Palm Jumeirah is one of the most frequently searched communities for villas and flats in 2022."
Other properties for sale at the ultra-luxury hotel include two- and three-bedroom properties ranging in price from Dhs25 million to Dhs38 million.
According to Carl Allsopp, chief operating officer of Allsopp & Allsopp, properties typically see new interest during the handover period." However, the situation at Atlantis Royal Apartments is a little different," he said." With the big opening ceremony, the eyes of the whole world were on the property."
With more people from around the world investing in Dubai, real estate experts say prices in the city are set to rise within the year.
"Prices in Dubai soared by double digits to 11.05 per cent in 2022, with its residential segment witnessing a record 86,849 sales transactions, replacing the previous record set in 2009," said Madhav Dhar, co-founder and chief operating officer of ZāZEN Real Estate." Dubai's real estate sector will also continue to be strengthened by the UAE's growing expatriate population, especially as Europeans enter the country in search of permanent residence."
Jalili agrees." He said, "A recent survey showed that the UAE is the second most likely target for home ownership this year after the UK among the region's wealthy." Arash Jalili said, "With more than 70,000 millionaires living in the city, Dubai's high net worth individual (HNWI) population is set to grow further; the emirate's luxury residential segment will be the biggest beneficiary of this influx.
