How the crash hit Palm property prices

The value of apartments in one of Palm Jumeirah developments has plunged by as much 75 percent in the wake of Dubai's 2008 property crash, documents obtained by Arabian Business reveal. Homes in Nakheel's Jash Hamad building, part of the Palm's Shoreline development, have in some cases plummeted from highs of AED7.6m (US$2.01m) to below AED2m. The properties range from luxurious three-bedroom apartments with sea and garden views to more basic one-bedroom homes. What they have all have in common is a severe downturn in value over the last four years. The Shoreline development, developed by indebted developer Nakheel, was marketed as one of the prestigious housing projects on Dubai's Palm Jumeirah. Since being handed to owners, however, the development has witnessed a series of issues ranging from tenant rows over beach club access to unpaid service charges. Dubai was hit hard by the global economic downturn which saw house prices tumble nearly 60 percent below their 2008-peak after credit dried up and speculators who had fueled the price increases left the market.