The UAE has developed a remarkable ability to establish high benchmarks in various disciplines such as The Palm Jebel Ali. There are many instances to support the country’s broad aims, its track record of hitting goals, and its emphasis on meritocracy, whether it be its space ambitions or the Dubai Expo 2020 bid that was successful despite the pandemic.
Nakheel announced re-launch of Palm Jebel Ali
Last week, another ambitious quest was set in motion. Being on halt for more than a decade, Dubai Nakheel developers have heralded its gears to set the re-launch of Jebel Ali in motion! The word is that the value of certain waterfront properties in Dubai has increased by 300 percent. This suggests that the re-launch of mega project Palm Jebel Ali could further reinvigorate Dubai realty market.
A spike in demand for luxury properties in Dubai
Along with Nakheel, other well-known developers are also dusting off the mothballed projects as demand for luxury real estate soars due to a tide of affluent immigrants to the Gulf city-state. Real estate companies with ties to the state and the government are attempting to revive projects that failed during the city’s debt crunch during the global financial crisis. These include the abandoned artificial island of Palm Jebel Ali and the stunted towers of Dubai Pearl, a protracted construction project at the entrance to another renowned reclaimed island, Palm Jumeirah.
These developments have long served as stark reminders of past excesses. Still, they are returning to life – thanks to a flurry of newcomers to the city, including wealthy Russians seeking to avoid the sanctions imposed after the invasion of Ukraine and billionaires from Asia investing in cryptocurrencies.
Palm Jebel Ali – A man-made architectural marvel
Nakheel is revisiting its plans for the mothballed project Palm Jebel Ali. The driver behind this notion is the surging demand for high-end beachfront properties in Dubai. The project is estimated to take years to complete and is 1.5 times as large as the nearby Palm Jumeirah. The estate agents in Dubai believe that the development of this man-made marvel may fill out the gap by contributing to the supply of waterfront homes available for purchase or rental.
Nakheel said, “The master plan for the Palm Jebel Ali is being reviewed. More information will be available soon “. The infrastructure required to support the island is unknown at this time. The global financial crisis halted development and led the values of properties for sale in Dubai to drop by 60%. The records reveal that despite the crunch, investors purchased 29 residences on the man-made island.
Dubai experiencing a housing boom
Dubai is experiencing a significant and mind-blowing housing boom, skyrocketing rentals and home prices. The Dubai Land Department reported that with 9,720 transactions totalling almost $6.6 billion, August was the best-performing sales month in 12 years (AED 24.3bn). Although Nakheel’s plans for Palm Jebel Ali have not yet been made public, it is probable that they will feature a substantial number of new beachfront villas. In fact, some sources suggest that as many as 1,700 villas might be made available alongside 6,000 new flats.
According to estate agents in Dubai, the demand for beachfront properties greatly outweighs the available supply, which has caused prices to skyrocket. Properties in Palm Jumeirah and Jumeirah Bay Island have seen price increases of about 30% during the past two years. A modernised beachfront five-bedroom property on the Palm’s Kingdom of Sheba enclave is offered at Dh45 million, while a 6,928 square foot, five-bedroom six-bathroom villa at Jumeirah Bay Island is now on the market for AED 38 million.
Dubai property prices are expected to continue rising…
A demand escalation for luxury homes and new villas has been fueled partly by a shift in buyer demographics. The estate agents in Dubai believe that as more Europeans choose to make Dubai their home, the demography of communities are starting to shift and Dubai property prices are expected to continue rising in 2023. This is due to the fact that more individuals are eager to relocate to the UAE following its effective management of the Covid-19 pandemic and golden visa programme.
According to Faisal Durrani, head of research at the real estate firm Knight Frank, reassessing Palm Jebel Ali might mark a crucial turning point in the emirate’s development. Over the past 13 years, Dubai has grown up. The city’s population has multiplied, and neighbourhoods have blossomed and become completely developed and populated.
“The pandemic outbreak triggered Dubai’s third freehold residential cycle. This has translated into incredible demand for beachfront properties in Dubai, which has led to historic price increases, such as 50% for villas on The Palm Jumeirah in the past year,” he stated.
The consequence of this significant demand has made the city’s paucity of new waterfront or beachfront zones more evident. “When the Palm Jebel Ali relaunches, it might help fill the city’s expanding beachfront housing gap.” The Palm Jebel Ali will need to prioritise community infrastructure and place-making to entice foreign buyers just the way they did with The Palm Jumeirah.
A new master plan for “Dubai Islands” project
Nakheel has also created a new master plan for the previous Deira Islands project. The waterfront region, now known as Dubai Islands, will consist of five islands spread across 17 square kilometres to meet the requirements of the Dubai 2040 Urban Master Plan to increase green space and coastal development.
Experts predict first properties at Palm Jebel Ali by 2025-26
Dubai luxury communities are in higher demand because higher prices were observed for Dubai prime properties in past 12 months. Therefore, the expectations are high for this mega development by Nakheel. The man-made marvel will eventually include more than 80 hotels and resorts, 22 km of beaches, and parks with panoramas of the Arabian Gulf. According to estate agents in Dubai, there will undoubtedly be a lot of demand from potential purchasers in both projects. Still, it is unknown how the availability of tens of thousands of new homes would affect the larger housing market.
According to Mark Richards, sales director at Luxury Residences, there is currently a strong demand for beachfront properties in Dubai. We anticipate a lot of interest, especially from investors who wish to list these properties in Dubai on the rental or short-term market because it is now a very lucrative source of revenue,” he said.
The impact of the new stock at Palm Jebel Ali on the rest of the Dubai housing market will bring a whopping effect in 2025 or 2026.
Bottom line
If you are searching for luxury properties in Dubai or want to register your interest in Palm Jebel Ali, you must contact the sales team HFRE at +971 4876 2473 or leave your query at info@hfre.ae. We have vetted every luxury property listing and we can also suggest you the best investment options.
