Nakheel Sells AED400 Mln Palm Jumeirah Plot To Local Investor

Nakheel PJSC said Sunday it has sold a Palm Jumeirah plot for 400 million U.A.E. dirhams ($109 million) to a local investor, reflecting renewed investor confidence in Dubai’s prime real estate market.

The 305,704 square foot plot on the trunk of the palm-shaped, man-made island was bought for AED1302 per square foot.

“We have seen a very healthy demand in the first half of 2012, and this looks set to continue for the year,” Nakheel said in an emailed statement.

The company added that residential plot prices in some parts of the Palm, such as Frond N, have increased by 30% in the last year and to date over 80 out of a total of 105 plots have been sold with a total sales value of over AED657 million.

There are some signs of recovery in Dubai real estate in recent months, after prices tumbled more than 50% in the aftermath of the global financial crisis in 2008, with the emirate’s land department recording a 21% year-on-year rise in transactions to total AED63 billion in the first half of 2012.

Analysts at Knight Frank said in a July report that prime Dubai real estate prices rose 1.8% in the second quarter from the previous quarter, but warned the overall outlook for the world’s prime markets is muted.

Dow Jones & Co.