Relaunch of Palm Jebel Ali shows 'sheer demand' for Dubai property


Nick Webster
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The relaunch of the Palm Jebel Ali megaproject could further turbocharge Dubai’s housing market as real estate agents report a 300 per cent rise in the value of some waterside properties.

Developer Nakheel said it is revisiting its plans for Palm Jebel Ali, a project dormant since 2009, as the city experiences a surge in demand for beachfront villas and apartments.

At one and a half times the size of nearby Palm Jumeirah, the project is expected to take years to complete but could fill the gap in waterside properties currently for sale or rent.

Nakheel confirmed that "the Palm Jebel Ali masterplan is being revisited. Further details will be released in due course". There is no word yet on the infrastructure that would be needed to cater for the island, which is 15 minutes' drive west of Dubai Marina.

Records show investors snapped up 29 properties on the man-made island before the global financial crash caused development to halt and property prices to fall 60 per cent.

In the last two years, homes in Palm Jumeriah and Jumeirah Bay Island have increased by around 300 per cent in price
Dean Charter,
founder of Paragon Properties

Dubai is in the midst of a housing boom not seen for more than a decade, with soaring rents and property prices.

Dubai Land Department said that August was the best performing sales month in 12 years, recording 9,720 total sales worth around $6.6 billion (Dh24.3bn).

While Nakheel’s plans for Palm Jebel Ali have not yet been released, it is likely to include a huge number of new beachside villas, with some reports claiming as many as 1,700 could become available alongside 6,000 new apartments.

READ MORE: Palm Jumeirah villa sells for $82.2m in record for Dubai property market

Dean Charter, the founder of Paragon Properties, said demand for beachfront homes far outweighs current stock, which has led to a huge spike in prices.

“There is such high demand for beachfront property now in Dubai,” he said.

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Two decades of Palm Jumeirah: in pictures

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“People want prime location, with water-facing properties which carry a huge increase in price.

“In the last two years, homes in Palm Jumeirah and Jumeirah Bay Island have increased by around 300 per cent in price.

“Some places on the water have doubled in price, others have tripled.”

A five-bedroom, six-bathroom villa in Jumeirah Bay Island across 6,928 square feet with sea views is currently on the market for Dh38 million, while an upgraded beachfront five-bedroom villa on the Palm’s Kingdom of Sheba community is priced at Dh45m.

'Property prices likely to rise and rise'

Record demand for new villas and luxury properties, in particular, has been fuelled by a changing demographic among buyers.

With more people looking to move to the UAE after its successful handling of the Covid-19 pandemic and golden visa programme, sellers said the demographics of communities is beginning to change as more Europeans make Dubai their home.

“Dubai has positioned itself as the place to be in a post-Covid world,” said Mark Castley, chief operating officer at LuxuryProperty.com.

“We expect property rent prices and purchase prices to increase for the short to medium term, at least.”

Faisal Durrani, partner and head of research at real estate consultancy Knight Frank, said revisiting the Palm Jebel Ali could represent a significant milestone in the evolution of the emirate.

“The Palm Jebel Ali’s rebirth could result in the emergence of Dubai’s much needed seventh city centre, following on from Deira/Bur Dubai, Downtown, Dubai Creek Harbour, The Palm Jumeirah-Dubai Marina-JLT, Dubai South and the recently relaunched Dubai Islands,” he said.

Mr Durrani said that over the past 13 years, Dubai has matured — the city’s population has expanded several times over and districts have mushroomed and become fully developed and occupied.

This custom-built villa on Palm Jumeirah’s frond J featuring six bedrooms over three floors sold for Dh87 million in January. Photo: Knight Frank
This custom-built villa on Palm Jumeirah’s frond J featuring six bedrooms over three floors sold for Dh87 million in January. Photo: Knight Frank

“The onset of the pandemic triggered Dubai’s third freehold residential cycle, the Covid-comeback, which we’re two and a half years into,” he said.

“This has translated into phenomenal demand for waterfront homes that has fuelled record price rises — 50 per cent for villas on The Palm Jumeirah in the last 12 months, for instance.

“The resultant impact of this extraordinary demand has sharpened the focus on the lack of new beachfront or waterfront districts in the city.

“If and when the Palm Jebel Ali relaunches, it could contribute to plugging the growing void of waterfront homes in the city.

“That said, with international ultra-high net worth individual demand predominantly focused on second homes as opposed to investment properties, as was the case in previous cycles, the Palm Jebel Ali will need to focus on community infrastructure and place-making as a priority if it is to tempt international second-home buyers in the same way as The Palm Jumeirah”.

A new master plan for the former Deira Islands project has also been drawn up by Nakheel.

Now called Dubai Islands, the waterfront area will comprise five islands across 17 square kilometres in line with the demands of the Dubai 2040 Urban Master Plan to create more green space and beachfront development.

Experts predict first properties by 2025-26

Once complete, the islands will have more than 80 hotels and resorts and about 22km of beaches and parks overlooking the Arabian Gulf.

Experts said there is likely to be plenty of interest from prospective buyers in both projects, but the impact on the wider housing market with tens of thousands of new homes becoming available is unclear.

“Demand for beachfront properties is huge at the moment,” said Mark Richards, sales director at LuxuryProperty.com.

“We expect to see big interest, especially from investors, as they want to put these properties on to the rental market or short-term market as it is a great source of income at the moment.

“It won’t be until at least 2025-26 before we could see the effect of the new stock at Palm Jebel Ali on the rest of the Dubai housing market.”

Dubai property apartment prices — September 2022

Key facilities
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  • Premier League-standard football pitch
  • 400m Olympic running track
  • NBA-spec basketball court with auditorium
  • 600-seat auditorium
  • Spaces for historical and cultural exploration
  • An elevated football field that doubles as a helipad
  • Specialist robotics and science laboratories
  • AR and VR-enabled learning centres
  • Disruption Lab and Research Centre for developing entrepreneurial skills
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COMPANY%20PROFILE
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The specs

Engine: 2.0-litre 4cyl turbo

Power: 261hp at 5,500rpm

Torque: 405Nm at 1,750-3,500rpm

Transmission: 9-speed auto

Fuel consumption: 6.9L/100km

On sale: Now

Price: From Dh117,059

The specs
  • Engine: 3.9-litre twin-turbo V8
  • Power: 640hp
  • Torque: 760nm
  • On sale: 2026
  • Price: Not announced yet
Why your domicile status is important

Your UK residence status is assessed using the statutory residence test. While your residence status – ie where you live - is assessed every year, your domicile status is assessed over your lifetime.

Your domicile of origin generally comes from your parents and if your parents were not married, then it is decided by your father. Your domicile is generally the country your father considered his permanent home when you were born. 

UK residents who have their permanent home ("domicile") outside the UK may not have to pay UK tax on foreign income. For example, they do not pay tax on foreign income or gains if they are less than £2,000 in the tax year and do not transfer that gain to a UK bank account.

A UK-domiciled person, however, is liable for UK tax on their worldwide income and gains when they are resident in the UK.

Volvo ES90 Specs

Engine: Electric single motor (96kW), twin motor (106kW) and twin motor performance (106kW)

Power: 333hp, 449hp, 680hp

Torque: 480Nm, 670Nm, 870Nm

On sale: Later in 2025 or early 2026, depending on region

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Specs

Engine: Duel electric motors
Power: 659hp
Torque: 1075Nm
On sale: Available for pre-order now
Price: On request

ELIO

Starring: Yonas Kibreab, Zoe Saldana, Brad Garrett

Directors: Madeline Sharafian, Domee Shi, Adrian Molina

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Conflict, drought, famine

Estimates of the number of deaths caused by the famine range from 400,000 to 1 million, according to a document prepared for the UK House of Lords in 2024.
It has been claimed that the policies of the Ethiopian government, which took control after deposing Emperor Haile Selassie in a military-led revolution in 1974, contributed to the scale of the famine.
Dr Miriam Bradley, senior lecturer in humanitarian studies at the University of Manchester, has argued that, by the early 1980s, “several government policies combined to cause, rather than prevent, a famine which lasted from 1983 to 1985. Mengistu’s government imposed Stalinist-model agricultural policies involving forced collectivisation and villagisation [relocation of communities into planned villages].
The West became aware of the catastrophe through a series of BBC News reports by journalist Michael Buerk in October 1984 describing a “biblical famine” and containing graphic images of thousands of people, including children, facing starvation.

Band Aid

Bob Geldof, singer with the Irish rock group The Boomtown Rats, formed Band Aid in response to the horrific images shown in the news broadcasts.
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Starring: Brad Pitt, Damson Idris, Kerry Condon, Javier Bardem

Director: Joseph Kosinski

Rating: 4/5

When Umm Kulthum performed in Abu Dhabi

  

 

 

 

Known as The Lady of Arabic Song, Umm Kulthum performed in Abu Dhabi on November 28, 1971, as part of celebrations for the fifth anniversary of the accession of Sheikh Zayed bin Sultan Al Nahyan as Ruler of Abu Dhabi. A concert hall was constructed for the event on land that is now Al Nahyan Stadium, behind Al Wahda Mall. The audience were treated to many of Kulthum's most well-known songs as part of the sold-out show, including Aghadan Alqak and Enta Omri.

 
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Developer: Treyarch, Raven Software
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Console: PlayStation 4 & 5, Windows, Xbox One & Series X/S
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UAE currency: the story behind the money in your pockets
The candidates

Dr Ayham Ammora, scientist and business executive

Ali Azeem, business leader

Tony Booth, professor of education

Lord Browne, former BP chief executive

Dr Mohamed El-Erian, economist

Professor Wyn Evans, astrophysicist

Dr Mark Mann, scientist

Gina MIller, anti-Brexit campaigner

Lord Smith, former Cabinet minister

Sandi Toksvig, broadcaster

 

World Sevens Series standing after Dubai

1. South Africa
2. New Zealand
3. England
4. Fiji
5. Australia
6. Samoa
7. Kenya
8. Scotland
9. France
10. Spain
11. Argentina
12. Canada
13. Wales
14. Uganda
15. United States
16. Russia

The biog

Age: 59

From: Giza Governorate, Egypt

Family: A daughter, two sons and wife

Favourite tree: Ghaf

Runner up favourite tree: Frankincense 

Favourite place on Sir Bani Yas Island: “I love all of Sir Bani Yas. Every spot of Sir Bani Yas, I love it.”

The White Lotus: Season three

Creator: Mike White

Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell

Rating: 4.5/5

Profile

Company name: Marefa Digital

Based: Dubai Multi Commodities Centre

Number of employees: seven

Sector: e-learning

Funding stage: Pre-seed funding of Dh1.5m in 2017 and an initial seed round of Dh2m in 2019

Investors: Friends and family 

RACE RESULTS

1. Valtteri Bottas (FIN/Mercedes) 1hr 21min 48.527sec
2. Sebastian Vettel (GER/Ferrari) at 0.658sec
3. Daniel Ricciardo (AUS/Red Bull) 6.012 
4. Lewis Hamilton (GBR/Mercedes) 7.430
5. Kimi Räikkönen (FIN/Ferrari) 20.370
6. Romain Grosjean (FRA/Haas) 1:13.160
7. Sergio Pérez (MEX/Force India) 1 lap
8. Esteban Ocon (FRA/Force India) 1 lap
9. Felipe Massa (BRA/Williams) 1 lap
10. Lance Stroll (CAN/Williams) 1 lap
11. Jolyon Palmer (GBR/Renault) 1 lap
12. Stoffel Vandoorne (BEL/McLaren) 1 lap
13. Nico Hülkenberg (GER/Renault) 1 lap
14. Pascal Wehrlein (GER/Sauber) 1 lap
15. Marcus Ericsson (SWE/Sauber) 2 laps
16. Daniil Kvyat (RUS/Toro Rosso) 3 laps

The biog

Favourite colour: Brown

Favourite Movie: Resident Evil

Hobbies: Painting, Cooking, Imitating Voices

Favourite food: Pizza

Trivia: Was the voice of three characters in the Emirati animation, Shaabiyat Al Cartoon

Titanium Escrow profile

Started: December 2016
Founder: Ibrahim Kamalmaz
Based: UAE
Sector: Finance / legal
Size: 3 employees, pre-revenue  
Stage: Early stage
Investors: Founder's friends and Family

Updated: October 20, 2022, 6:27 AM`