How many millions do rich pay for villas on Dubai’s Palm Jumeirah?

Palm Jumeirah has notched the biggest villa deals in Dubai for the second consecutive quarter in 2014, with investors spending nearly Dh219 million on the six deals, data shared exclusively by Reidin.com with Emirates 24|7 reveals.

The costliest of the top 10 deals was completed for a Palm villa, which sold for Dh58.8 million, or Dh7,684 per square feet.

Two transactions in Emirates Hills took the second and third place with buyers paying Dh35.5 million and Dh35.3m, respectively.

The fourth place was shared by deals in Emirates Hills and Palm Jumeirah, respectively, each priced at Dh34.5m.

In the first quarter 2014, Palm Jumeirah had registered nine of the top 10 biggest villa deals, with average prices ranging between Dh3,000 and Dh4,900 per square foot.

The biggest deal was on the Palm for Dh45m.

According to market sources, most of these “big” deals are done in cash with the nationalities mostly from Russia, Iran and India.

Though UK-based Knight Frank, a real estate consultancy, reported an annual price growth slip from 11.7 per cent in Q1 2014, to 6.3 per cent in Q2 2014, in Dubai's luxury property market, Reidin.com has said residential property prices performed "still well" in June.

The Dubai residential property sales price index increased by 1.28 per cent month-on-month (m-o-m) and 36.2 per cent year-on-year (y-o-y). Apartment sales prices rose 1.12 per cent m-o-m and 39.7 per cent y-o-y, while villa sales prices went up 1.97 per cent m-o-m and 23.1 per cent y-o-y.

Earlier in the year, HSBC Global Research said it expected residential property prices in Dubai to increase by 10 to 15 per cent in 2014. In the past, Knight Frank made a similar projection as well.

“We forecast 10-15 per cent growth in prices from current levels in 2014 and relatively stable net yields at 4.5-5 per cent,” HSBC had said.

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