Following on from my comments regarding SDG:
Dubai's Palm Island heads for an apartment sell-out
When those buyers who registered for an apartment on the Palm Island get the call to write their checks next week they had better be quick, for more than 10,000 people have signed up to buy 2,400 apartments.
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Real estate fever is gripping the emirate of Dubai, and Emaar Properties says it has been delighted by the response to its latest Arabian Ranches villa development. It seems everyone wants to own a place in the sun these days.
Less prosaically Emaar chairman Mohammed Alabbar has probably got it right when he says Dubai is just tapping into an enormous pent up regional demand for property ownership. Dubai has also been lucky with its timing. Record low interest rates and dismal stock markets are good news for realtors.
There is another good reason why Dubai property is a hit. Because the Dubai government is behind the real estate boom, and has secondary motives such as attracting wealthy immigrants to the city, villas and apartments are being sold very cheaply.
One way you can judge if real estate is cheap, or not is to look at the yield, or rental return. In the case of Dubai a basic yield of 10% on residential property compares with a 6.5% local mortgage rate. Now in London 3-4% would be considered good a good yield today, so 10% implies a considerable undervaluation of property.
Of course, an increase in the supply of property may reduce yields in Dubai. However, that will take some time. The buyers of apartments on Palm Island will not actually move in until the end of 2005.
Indeed, the problem is rather the reverse in Dubai. The supply of property is not keeping up pace with demand. A city with a GDP growth rate of around 8% sucks in new people all the time and has a burgeoning demand for housing.
That would mean that villa and apartment values will ratchet still further upwards as freeholders take possession. For the time being buying property in Dubai looks a sure fire winner, if you can find a property to buy.
Villas For Sale in Palm Island, Dubai United Arab Emirates
Freehold Villas In The Palm Islands: Jumeirah - Jabel Ali
Asking Price: $1,500,000 - $10,000,000 USD
An Unparalleled Vision - Please Contact Us For Villas Currently Available
As a part of his commitment to transform Dubai into one of the world's premiere travel destinations, His Highness Sheikh Mohammed bin Rashid Al Maktoum conceives of man - made islands comprised of homes, resorts hotels and amenities.
Every Villa on The Palm features a private beach and swimming pool to complete an experience of exclusivity and luxury. Modern amenities and ocean views make your dream home reality.
Offering homes inspired by international architecture, The Palm provides buyers with a variety of designs and styles, giving residents the opportunity to make The Palm their own.
General Features
Stunning water views from all homes
Homes designed by international architects with choice of layouts and styles
Family living in a secure environment
Designer selected interior finishes in a choice of three colour schemes
Ceramic floor tiles-marble/wooden optional
Solid core entry door with security view hole
Walk in closest with shelves and wooden doors
Insulated, double-glazed windows
Tiled balconies
Distinctive overhead lighting
Technology & Security
High-speed internet access with "future technology ready" features
Homes ready for cables TV and telephones
Homes ready for state of the art security system
24-hours water patrol
High quality switches and outlets
Private homes health and recreation club
Marina clubhouse with pool, gymnasium available to Villa and Canal Cove Townhomes residents
Access to club for nominal fee
Kitchen
Highest quality kitchen cabinetry with choice design finish
Selected granite tops
Ceramic tiled splash backs
Ceramic floor tiles
Twin bowl stainless steel sink with quality mixer tap
Space and service provided for major appliances
Track lighting
Bathroom
Choice of quality vanities with granite tops
Ceramic tiled flooring and walls
Selected ceramics sanitary ware with matching accessories
High mirrors and vanity lighting
Ceramic accessory package to match bathroom design
Safety glass shower enclosures
High quality mixer taps
External Features & Palm Services
Private covered garage for two cars
Remote controlled ready garage doors
Individual swimming pool
Water views and exclusive private beaches
Private gardens with "hardscaping" installed
Paved drive-in for homes
Shopping
The Village Center, conveniently located near the Shoreline Apartments will be fully equipped with supermarkets, laundry, beauty parlours, barber salons, tailors and all other services required for daily living.
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