DUBAI: A luxury villa on Dubai’s Palm Jumeirah has been sold for nearly USD 7.6 million at an auction, bucking the trend that saw property prices on the island decline steeply in the recent months.

The six-bedroom Signature villa, located on a 13,000 sq ft plot, attracted an opening bid of USD 5.9 million (22 million dirhams) at a private auction, developer Nakheel said in an emailed statement.

“The highest bid fetched nearly USD 7.6 million (28 million dirhams),” the developer added, without specifying the sale price.

House prices in Dubai have fallen more than 60 per cent in the last three years from their peak since the collapse of the city’s real estate bubble in 2008.

According to reports, prices could drop further as the market expects more supply.

In June this year, the UAE government said it would offer three-years visa to owners of properties worth one million dirhams or more, replacing visas that require renewal every six months, in a bid to spur interest among foreign buyers.

However, another report from Jones Lang LaSalle (JLL) said the Dubai property market is showing good signs of recovery with many neighbourhoods reporting the first increases in values since 2008.

According to data released by the global property consultancy last month, prices for luxury villas rose 3 per cent in the second quarter.

However, prices for apartments continue to slip, easing down 1 percent for the quarter, with an abundance of supply available, the consultancy said.