Residential land prices in some of the most exclusive parts of the Palm Jumeirah have shot up by 30 per cent over the past year as Dubai's property market continues to recover.
Nakheel, the developer behind the man-made island built in the shape of a palm tree, said yesterday it had sold a 305,704 square foot prime plot of land for Dh400 million (US$108.9m) to an anonymous local investor for a total purchase price of Dh1,302 per square foot.
Dubai's biggest state-owned developer said plot prices on the exclusive "Frond N" had increased by nearly a third over the past year.
The company also said it had sold more than 80 out of 105 plots on the project, with a total sales value of Dh657m.
The news comes as property brokers across the UAE have been reporting a recovery in the Dubai land and housing market.
Data sourced from the Dubai Land Department by the property broker CBRE revealsthe number of property transactions in the emirate rose 15 per cent in the three months to June, to 3,165, compared with the previous quarter. Meanwhile, the total value of transactions rose 29 per cent to Dh4 billion.
"There are clear signs of renewed investor confidence in Dubai real estate and in particular for unique products such as those offered on Palm Jumeirah," a Nakheel spokesman said.
"We have seen a very healthy demand in the first half of 2012."
Last month, Nakheel announced net profits of Dh767mfor the first six months of the year, an increase of 36 per cent over the same period last year.
At the time the company reported handovers of new properties accounted for revenue increasing to Dh3.1 billion from Dh1.4bn in the first half of last year.
Last August last year, Nakheel re-started work on thousands of stalled homes on the Palm Jumeirah after it completed a Dh60bn financial restructuring.
"Land and properties on Palm Jumeirah are in big demand thanks to its unique design, location and ever-increasing range of amenities, including new hotels and resorts, public parks, our forthcoming Pointe recreation and retail development and more facilities to be announced soon," the Nakheel spokesman said.