Dubai’s largest by assets developer, Nakheel PJSC will start selling townhouses on the Palm Jumeirah next month. This is the company’s first new residential project since the property market crashed in 2008.
Alongside the apartments and villas already built on the Palm, Nakheel plans to construct 102 mid-range priced townhouses. The project was first announced in September 2011.
DubaiChronicle.com has not yet received information about the pricing of the new residential units per square foot. However, in February 2012, the price of ready to move in residential properties on the Palm varied from AED 650 ($177) to AED 850 ($230) per square foot.
The new Palm Residence project will test demand for residential property in a market where prices have plunged by more than 70 per cent since their mid-2008 peak.
Most of the Palm project will be financed by sales agreed before construction begins, a method that was common before the property slump, but not through bonds or loans from international banks.
Nakheel plans to spend Dh1.4bn this year to complete nine projects across Dubai that had been suspended after the property crash and to complete 7,982 homes in 2012.
The company also plans to resume work on residential developments in Russia and Saudi Arabia, where housing demand is still high.