Palm Jumeirah is set for some more residential and hotel units even as home prices are expected to fall in Dubai.
The Dubai-based developer Seven Tides yesterday said that Dukes Oceana, a mixed-use five-star complex on the trunk of the man-made island, will be handed over in the first quarter of next year.
The London-based Dukes will manage the residential as well as the hotel components.
The Dukes Oceana residences will be launched for sale on Tuesday.
The project will have 227 studio and one-bedroom apartments. Prices start from Dh760,000 for a studio and increase to Dh2.5 million for a one-bedroom unit.
The 273-room hotel will feature a private beach and six restaurants.
Average home prices and rents have fallen marginally over the past three months, and the residential market is stabilising near the top of its market cycle, according to Craig Plumb, head of the research advisory firm JLL in the Middle East and North Africa region.
“JLL expects this trend to continue over the remainder of the year, during which we are forecasting average prices to decline by up to 10 per cent during this year,” he said.
“This does not mean there is no room for further new product to enter the market.”
The current rates of employment and population growth indicate that the Dubai residential market could support 10,000 to 15,000 additional residential units this year.
“And additional supply will be supported by the continued demand for investment products in the Dubai market,” said Mr Plumb.
About 25,000 units are expected to come on to the market this year, and an additional 13,000 units next year, according to JLL’s fourth quarter report. During the same period, rentals and sales for apartments remained flat quarter-on-quarter.
JLL’s first quarter report is expected on Monday.
Emirati investors form a majority of the buyers accounting for about 21 per cent of sales for the first half of last year, said the Dubai Land Department. They were followed by Indians, British nationals, Pakistanis, Saudi Arabians, Russians and Iranians.
“Given the strengthening of the dollar over the past year, particularly against the rouble and the euro, Russian and European buyers are likely to be less active this year, with those from elsewhere in the Middle East, particularly Saudi and Iran, and Chinese becoming relatively more important,” Mr Plumb said.
Despite being a destination in itself with malls and new retail spaces coming up, Palm Jumeirah is not insulated from macro trends such as the strengthening dollar, which will have an impact on all sectors of the market, he said.
Separately, Nakheel, the master developer of the Palm Islands, unveiled new projects with a combined area of 23 million square feet across Deira Islands, Dragon Mart and Ibn Battuta Mall.