'Healthy demand for Palm plots'

Nakheel sells prime plot on the Trunk for Dh400m

Dubai-based developer Nakheel says demand for plots of land on Palm Jumeirah remains “healthy.”

“There are clear signs of renewed investor confidence in Dubai real estate and in particular for unique products such as those offered on Palm Jumeirah. We have seen a very healthy demand in the first half of 2012, and this looks set to continue for the year,” a Nakheel spokesman said.

The company also disclosed that it sold a 93,178 square metres (305,704 square feet) prime plot on the Palm Jumeirah Trunk for Dh400 million, or Dh14,014 per square metre, to a local investor.

To date, Nakheel has sold over 80 out of a total of 105 plots with total sales value crossing Dh657 million. Since last year, residential plot prices in some parts of The Palm – notably Frond N – have increased by 30 per cent, the company said.

“Land and properties on Palm Jumeirah are in big demand thanks to its unique design, location and ever-increasing range of amenities, including new hotels and resorts, public parks, our forthcoming Pointe recreation and retail development such as Palm Mall and more facilities to be announced soon,” the spokesman said.

In April, Nakheel sold a 5,574 square metre plot on Palm Jumeirah Pointe, opposite Atlantis, for Dh87 million.

“There is healthy demand for properties on Palm Jumeirah. Prices have gone up and investor confidence is back. Things are definitely moving in the right direction,” Nakheel Chairman Ali Rashid Lootah had told Emirates 24/7.

On average, Frond N plots were sold for Dh860 per square feet.  The remaining stock is seen likely to yield a premium for Nakheel.

“We are not in a hurry to sell the remaining plots. We are also not planning to sell plots on Frond G… we have retained it as our land bank,” Lootah had said.

Emirates 24/7 reported in July that prices of Signature and Garden Home villas on Palm Jumeirah had risen, registering average increase of 11 to 25 per cent in first half of 2012 compared to same period last year.

Nakheel announced in July that first-half profit had jumped 36 per cent to Dh767 million from Dh562 million in the year-ago period, buoyed by property handovers. Revenues shot up 112 per cent to Dh3.1 billion in H1 2012 over the corresponding period of the previous year.
 

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