Palm properties being sold higher than prices

Nakheel, Dubai-based master developer, claims it is selling properties in Palm Jumeirah at prices higher than pre-crisis period. “Our sales are strong and we are selling at record prices, which are higher than pre-crisis prices mostly in Palm Jumeirah,” interim Chief Executive Officer Sanjay Manchanda said on Wednesday. He added that demand was “fantastic” for Nakheel’s luxury projects and Palm properties now selling for Dh15,600 to Dh16,150 per square metres. Company Chairman Ali Rashid Lootah had said there is “high” demand for properties on Palm Jumeirah. Asteco, a real estate consultancy, said earlier this week, that apartment sales prices in Palm Jumeirah have risen nine per cent to Dh12,900 per square metre in the first quarter compared to the fourth quarter 2011. The company has commenced handover of 1,663 units in International City’s Emarati Cluster, which comprises 26 buildings. It will also be delivering 246 units in Jumeirah Heights and 31 luxury units in Jumeirah Islands. “Our first priority is to get our project that we have started completed. We are announcing new projects and all depends on the demand.” Manchanda added that the company committed funds for completing projects that have been included in its restructuring plan. In accordance with the restructuring plan, Nakheel will develop 8,252 units across various developments in Dubai. To date, it has handed over of 3,549 units with remaining units planned for hand over in 2012 and early 2013. In a break down, provided last year, the company said it will deliver 594 units and 177 units in Badrah and Veneto, Waterfront, by June, 1,795 units in Jumeirah Park by November, 2,188 units in Jumeirah Village by December and 1,154 units in Al Furjan by December. Nakheel, in a statement, said that company is witnessing almost 100 per cent occupancy across its residential portfolio, reflecting a “much improved” residential sector compared to the past few years. On the service charge issue, the company interim CEO said that they were still taking the “soft” approach and hoping that the owners will pay their dues. “I am not punishing any community. Some people cannot enjoy the privilege for which their neighbor is paying,” he informed. The company said that post November 2009 it has made total payments of Dh7.6 billion to various contractors, creditors and suppliers. In has issued sukuk of Dh3.8 billion to its trade creditors and made a total payment of Dh320 million in interest and profits to its lenders to date.