Summer 2012
Palm Jumeirah palm mall design firm has been appointed
more new developments announced for the palm
life comes back to the sea around palm jumeirah
starwood dusts off plans for w hotel
In a contract worth AED 25,000,000, the Singapore-based architecture firm RSP has been chosen to design an 83,000-squaremetre mall for the trunk of Palm Jumeirah.
A new development of what Nakheel terms ‘piedà-terre’ apartments, is to be built adjacent to the Palm’s East and West marinas. Each building will house 96 apartments of approximately 500 sq.ft.
United Nations scientific researchers say that marine life is returning to Palm Jumeirah’s waters. They have recorded up to 100 species of fish and 20 corals around the outside of the breakwater.
Announced in 2006, plans for a W Hotel were axed during the downturn; now, as part of a 40-hotel plan for the MENA region, Starwood says that it will open the property by 2016.
Palm Jumeirah property in numbers
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number of kilometres from the mainland to the tip of Palm Jumeirah. The farthest edge of the western and eastern sides of The Crescent breakwater are also 5km apart
10.5
metres. The deepest point of the seabed at the point where the breakwater has been constructed. The top of the breakwater is 13 feet above low tide level.
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number of fronds making up the ‘crown’ of Palm Jumeirah. To date, some 1,400 villas have been built on 11 of the fronds.
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the number of hotels planned to be built on the Palm, of which 22 are planned for The Crescent. The first to open was Atlantis, in September 2008.
72
the number of hours it took for the initial offer of villas to sell when they were launched off-plan in 2002
40,000
the number of workers employed on the Palm at the height of its construction.
Life is Beautiful on the Palm In a city defined by ambitious projects, Palm Jumeirah may have been the most ambitious of all. Now it is maturing into a great neighbourhood by Alexandra Duchemin
For some, it’s the quality of the morning light as it is reflected off the calm sea; for others it’s being able to arrive home after a busy day, kick off their shoes and step straight on to their own private stretch of sand – whatever the specifics, Palm Jumeirah’s residents are united in believing that living here adds a special quality to their lives. And, rather than the prestige of having one of the world’s most instantly recognisable addresses, or the obvious comfort of living in a large and airy villa, it is down to the intimate connection between those villas and the water. “Since we moved here we have become so much more aware of nature,” says one. “We really notice the way the light changes over
the course of the day and the way the breeze feels. And, now that our garden and those on either side of us have become established, we are very aware of the birds – especially because it’s so lovely and quiet here, with no traffic noise whatsoever.” For another resident, that connection with the shore is ‘the world’s best de-stresser’. “After the pressure of the working day, to step through the door and be able to look straight across the lawn to the beach is the best feeling,” he says. “In an instant, everything slows down – and, once my shoes come off, that’s it. I spend almost all of my time at home in bare feet.” For the pioneering homeowners who signed up in 2001 there was nothing but open sea beyond the beaches of Al Sufouh; now, clearly, their leap of faith has been fully vindicated. Contrary to the clichés about fly-by-night speculators, a good number were long-term UAE residents who saw the Palm as an opportunity to finally buy their dream home. Even the delay in the project’s handover – due to the magnitude of the engineering challenge in building the island – failed to dent their
confidence. With the first residents installed just before the financial crash, it took some time before the fronds began to feel established. With many of the villas let to tenants and some remaining unoccupied, some gardens quickly fell victim to the harsh summer climate and the fronds felt almost lifeless. But what a difference a couple of years have made: gardens have become well-established, around 80 per cent of the villas are occupied, the sound of childrens’ laughter echoes along the water’s edge, and the streets take on the normal rhythm of life that’s found in very well-to-do neighbourhoods all over the world. It should, of course, be said that Palm Jumeirah is not only about the fronds: the apartment buildings along the ‘trunk’ of the Palm house some exceptional apartments. With wide-open views across the sea towards Burj Al Arab, Atlantis or Dubai Marina – depending on the building – most buildings have private beaches directly at their feet, with their own well-appointed beach clubs, swimming pools, bars and cafes as part of the package.
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continued on page 16
Current Prices The average listing price, by property type, in Palm Jumeriah for both villas and apartments Average Price (AED/ sq ft) Signature Villas
2,791
Garden Homes All Properties Apartments 0
1,000
1,914 1,524 1,351 2,000
3,000
Source: Luxhabitat analysis, June 2012
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the journal
Summer 2012
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Palm Jumeirah did you know... In April Nakheel reported that it sold a prime 60,000-square-foot parcel of land at the Pointe, facing Atlantis, for AED 7,000,000 – the equivalent of AED 1,450 per square foot. The developer also reported that prices for plots have increased by 30 per cent this year, with strong demand on Frond N, where 74 plots – of 105 – have been sold, for a total of AED 657 million. Nakheel awarded a contract to Al Marwan Construction for almost AED 18 million worth of infrastructure work on Frond N, due for completion in about five months.
Expert View Paul Christodoulou
Luxury Sales Specialist, Luxhabitat E: pc@luxhabitat.ae | T: +971 50 955 9498
The Good Times Roll Again
continued from page 15
“Living in Tiara is like coming home every night to a very high-end beach resort,” remarks one resident of the prestigious apartment complex that sits at the point where the trunk links to the fronds. “I get so much more value out of my free time; since most of my leisure activities are literally on my doorstep, I don’t lose a minute driving anywhere and don’t even need to plan things in advance. For me, the security, convenience and amenities that come with living in a high-end apartment complex like this makes it even better than a villa.” The range and number of day-to-day amenities along the Palm’s trunk continues to grow, with small grocery shops, a deli, cafes and even a nursery school providing not only practical value but also enhancing the development of Palm Jumeirah as a real community. The announcement by Nakheel that work will soon begin on its new townhouse development on the Marina-facing side of the trunk (where once it was planned to moor the liner QE2 as a tourist attraction) is likely to encourage more owners of shops and related services to open in the retail spaces along the Golden Mile, making life even easier for residents. What’s more, with six luxurious hotels now open on The Crescent, offering a great range of dining and entertainments choices, Palm Jumeirah is looking more and more like ‘an island unto itself’, where life can be enjoyed to the full.
As developers resume work on projects stalled by the downturn, potential buyers are feeling increasingly confident in the Palm
Palm Jumeirah now has a global reputation: it is Dubai’s Eiffel Tower. From a property viewpoint we have seen a massive change over the past year or so – the area has finally become a genuine community. This is because the days of buying a house here purely to re-sell are gone, even though prices have risen by 25 per cent over the past two years. There are some who purchase a property specifically for letting because they can achieve about AED 900,000 per year, but most buyers now are long-term users. The reason for this is simple: the profile of the community is much older than most assume. Aside from some of the cheaper apartments, which attract young entrepreneurs, those who buy our luxurious garden homes or villas tend to be in their mid-40s.
Our sales are up by 20 per cent this year and, for the first time since the crash most properties have three or four interested parties instead of just one
Brothers collapse, prices here plummeted by 65 per cent – the largest drop in the UAE – but they are steadily rising again as consumers regain their faith in the development. Our own sales are up by 20 per cent from last year and, for the first time since the crash, most properties have three or four interested parties instead of just one. It shows that the market has substantially picked up. The area is quite healthy these days and will only go from strength to strength. Construction on many of the unfinished projects has resumed and it certainly fills potential buyers with confidence when they see the likes of Nakheel, which has had widely reported problems, back in action – with the recent sales launch of its Palma Residence townhouse development. Construction work can also be seen as a downside and it’s fair to say that the Palm isn’t the quietest or most private of places – but I think residents secretly quite like the hustle and bustle. Furthermore, parts of the fronds and crescent are now 95 per cent complete; there’s no more room for big developments, so there’s a bit more stability and a lot less noise. The next five years are crucial for Palm Jumeirah. I predict that, by 2016 the area will be fully completed. Around the crescent there are currently six finished hotels and several under construction. There should eventually be to about 35 and shopping malls and schools may start to materialise as well. There is already a much-needed nursery. All of this will give The Palm even more of a gated-community feel and probably, a few years from now, create a long, long queue of willing buyers.
At Luxhabitat we have about 15 properties available for sale at any time – mostly Garden Homes or Signature Villas, with three to seven bedrooms. The garden homes start at about AED 9.5 million, with villas priced from AED 15 million. This is still quite a bit cheaper than in pre-recession times. After the 2008 Lehman
Paul Christodoulou was talking to Samantha Armstrong
Palm offered “a real place to create a home”. First came the properties – Ming has a Shoreline apartment and two villas on the fronds – and now comes the wish to see his chosen neighbourhood evolve into a real community “in the human sense”. Ming enjoys the Palm’s different moods. “The Shoreline offers hotel-style living, with all of the amenities right there, lots of activity at the pool and beach, different nationalities, the restaurants and bars. Being so lively, it’s better than the fronds in some ways,” he says with a smile. “In the villas life is completely relaxed. Although it can feel too quiet, we live in a very busy modern city, so it’s good to have this contrast. It’s like living in paradise: you walk out of the villa and there’s the water – and the sound of birds all around.” “For years, when I was working day and night to build my business, I really needed to get away for a couple of weeks a year on holiday. Living here has changed the pace of my life so much, that need has almost disappeared.” “In fact, I get very lazy,” he laughs. “Sometimes I ask business people to come to the house, rather than going in to the city to meet them.” But that’s a plus: “I’m more productive and business associates feel more relaxed here so we can talk more freely. It’s better for everybody. I believe business is
about relationships and this environment is very good for those relationships.” The Palm also offers numerous first-class restaurants where he can entertain business associates – as well as hotels where they can stay. Ming lived in the UAE for the first time in 1983, working for a construction company and, after returning to his native China for a couple of years, was back in 1988, for the development of ‘new’ Shahama, near Abu Dhabi. In 1994 he started his own business supplying the construction industry. “I had begun developing opportunities in Africa as well as the Middle East and the UAE felt like the best place to be – the free trade policy offered so many opportunities [Jebel Ali Free Trade Zone had just been announced].” Ming thinks this is one of the best places in the world to live. “Everything is available; I feel very free and secure. And I love that, even being well-off, you are free to live your own life in a relaxed way.” That can have a humorous side: “There was great moment when I went over to my boat at DIMC, dressed in jeans and a t-shirt. I think the security guards couldn’t tell the difference between me, being Chinese, and a Filipino – so they asked if I had come to wash my boss’s boat,” he says, laughing heartily.
interview
‘It Feels Like Living in Paradise’ Having built up a successful business during two decades in Dubai, Xu Ming finds that living on the Palm allows him to be even more productive, yet at a slower pace by Sandra Lane
Xu Ming acknowledges the irony that what he likes most of all about living on Palm Jumeirah is also the thing that he likes the least. “I love the complete peace and privacy here,” he says. “But it can sometimes feel too isolated – you’re more likely to see domestic staff and gardeners than to meet other residents. It’s funny how such a plus can also be a negative.” For Ming, a long-time resident of Dubai, the
Summer 2012
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star property propertY
Mediterranean Elegance in a Prime Palm Location
While the pretty, yellow-painted stucco facade and white balustrades of this villa evoke memories of the Belle Epoque houses of the Italian and French Rivieras, the style translates particularly well to the beach-front setting of Palm Jumeirah.
FASCINATING FACT... Palm Jumeirah was a very unusual and challenging reclamation project because its engineers had no adjoining land to act as a fixed point. Satellite technology provided the solution, with every rock used for the breakwater – ranging from one to six tonnes in weight – given a GPS locator to ensure that it was positioned to an accuracy of one centimetre,
The simple and elegant layout of the grounds, with topiary shrubs and a broad paved terrace surrounding the overflow-style swimming pool, complements the house perfectly. The bonus is direct access to a private, sandy beach, a few steps below the garden.
Adding to the European ambience is the Régence-style interior decoration: the original finishes have been completely upgraded and the furnishing complements it perfectly, from magnificent chandeliers to elegant drapery and fine furniture. All of this is included in the sale of the villa – meaning that the new owners can simply walk in with their suitcases. The spacious interior is laid out in a manner that encourages the relaxed style of family living that you would expect by the sea, while also providing an ideal setting for grand entertaining. Equally, it is well-suited to both
Western and Arabian-style living. A majlis or formal living room, and a formal dining room are set to either side of the entrance foyer, beyond which is the villa’s central, double-height rotunda, through which daylight floods into the heart of the house. An open-plan family kitchen/dining room and family room span the sea-facing façade of the house, with a view of Atlantis and the sunset. A ground-floor guest suite is complemented by four ensuite bedrooms upstairs. AED 25,000,000. Property Ref. 966. Contact Linda Kuhn, LK@luxhabitat.ae
Property Values return to Healthy Levels Caught by the global financial crisis just as properties were being handed over, home owners on Palm Jumeirah have seen values recover strongly since those tough times
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by Samantha Armstrong
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35 32 30 27
But there is a negative side to the anonymity: “While nobody is bothered about who you are, I feel that nobody wants to know who you are – as a human being, not in the sense of your status or supposed importance. On the Palm there are so many nationalities but they don’t seem to mix much. Add the fact that wealthy people in general don’t mix much and it doesn’t make for a strong sense of community. “People are very polite and friendly – it just doesn’t go deeper than that; there’s no real dialogue, in my experience. It’s not a problem, but I think life here would be better if people connected with each other more.” This will come, he believes: “Palm Jumeirah took five years to build and has taken five years to get through the financial crisis. So it will take another five years to mature fully.” Today, Ming is a happy man: “I do feel that being here is my payback for the years when I worked so hard. I’ve earned it and it’s nice to have this evidence of my achievements.”
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Given that it was among the first and most ambitious of Dubai’s major developments, the eyes of the world have long been on Palm Jumeirah – and no more so than when the property market collapsed in 2008 and prices here took a major hit. Because of the length of time the development took to build, and the ambitious nature of the project, the original price per square foot in 2004 was very low – making prices of around AED 2,800,000 for a Garden Home and AED 4,500,000 for the Signature Villas. By September 2008 prices had become massively over-inflated, catapulting to between AED 14,000,000 and AED 40,000,000 (around a 700 per cent increase – with the development still two years away from the handover stage). With a swift volte-face in the market, by 2009 villa prices had dropped as low as AED 6–18m. The steep decline was due in part to the fact that, until 2010, a lot of early investors still owned Palm properties and most had purchased at around the AED 4–5m mark. Investors could sell cheaply and still make a profit on the original purchase, so prices fell dramatically from the peak. Since mid-2010 villa prices have risen steadily to a current range of AED 9,000,000 to AED 32,000,000. On the fronds the Signature Villas are the most expensive type – currently between AED 15 million and AED 32 million – while the
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Values on Palm Jumeirah villas were hit very hard after September 2008 but in the past year have recovered well Source: Luxhabitat analysis, June 2012
Garden Homes are AED 8m to AED 13m. The highest end of the scale is represented by upgraded villas – and intelligent changes to the space planning count for just as much as higher-quality materials and finishes. Among villas of the same type, prices are dictated by their position on a frond: the higher numbers occupy a better position with more space between adjacent villas, proximity to the beach and the width of the beach itself. There was a lot of movement in villa sales during 2011 and most investors have now sold out ofthe development, making it more of an owner-occupier community. Data from Reidin shows that the price per square foot of Palm Jumeirah apartments, in
buildings such as the Shoreline, Marina Residences, Tiara and Oceana, fell to its lowest a little later than the villas, in December 2010. At the peak, average sales price per sq.ft was AED 1,569, with a low of AED 1,066. The current average sales price for a Palm Jumeirah apartment is AED 1,174 per sq.ft. The current price range for apartments is very wide – from AED 1,000,000 to AED 20,000,000 – governed by the variation in size (from a studio to a three-bedroom duplex), as well as location, quality and view. Location and prestige are still the main drivers for people buying on Palm Jumeirah and this is sure to keep the internationally recognised project afloat in the long term.
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featured propertIES
Property Gallery
Scan the QR code with your smartphone to www.thejournal.ae
Set on one of Palm Jumeirah’s most sought-after fronds, this fully furnished Mediterranean-style villa sets the mood with a superb double-height entrance foyer that leads through to a series of open-plan living rooms, all of which open on to the garden, with the beach just beyond and Atlantis in the background. Its generous 5,000 square feet of living space includes four bedroom suites. In the garden, space is maximised by having the pool set to the side of the house. AED 11,000,000. Property Ref. 864
Immaculately maintained and perfect for relaxed family living, this 5,000-square-foot villa offers four ensuite bedrooms, as well as great open-plan living areas overlooking the private beach. Offered for sale furnished. AED 10,500,000. Property Ref. 829
FOR RENT
This beautiful, fully furnished 6-bedroom villa has an unusually large garden set on the same level as the beach AED 1,200,000 per year. Property Ref. 964
A classical Italian-style villa near the end of a frond, with a fantastic view towards Dubai Marina, this well-maintained 7,000-square-foot property offers great scope for both interior decoration and gardening. AED 23,000,000. Property Ref. 959
SIGNATURE VILLA
With a fabulous double-height entrance foyer and six bedroom suites, this gorgeous villa is on one of the Palm’s best fronds. AED 24,000,000. Property Ref. 966
central pool
Close to the end of a sought-after frond, this 7-bedroom, 7,000-square-foot villa offers fantastic beachfront living. Price on Application. Property Ref. 985