In a stunning resurgence of Dubai’s real estate market, prospective buyers are gathering to snap up luxury properties on Palm Jebel Ali, the largest among the famed palm-shaped artificial islands in the United Arab Emirates. This heightened activity signifies not just the revival of the once-stalled Palm Jebel Ali development but also the end of a seven-year property downturn in Dubai. What’s most remarkable is the steep hike in property prices—now 10 times what they were when the project was initially started two decades ago, not yet completed.
A large number of Buyers and Investors showed up.
Even in this time of September 2023, the weather is quite warm in Dubai. People coming outside the sales centre of Nakheel PJSC where the government of Dubai is also supporting this property developer in charge of the Palm Jebel Ali project, which was nothing short of electric. In September 2023, several Brokers, investors, and wealthy buyers gathered as early as 6 a.m. of a day of braving 100-degree Fahrenheit (38-degree Celsius) heat during the announcement, with the luxurious villas offerings priced at a minimum of 18.7 million dirhams ($5.1 million) and bigger land plots even higher at around 40 million dirhams. The allure of having a piece of this new luxurious housing project was undeniable.
During this period, Security was tight around Nakheel’s sales centre, which is situated just near Palm Jumeirah. It is the city’s first and one of the most famous man-made islands. Several brokers representing countries like Russian and Indian clients were angling to gain entry, armed with chequebooks and showing their strong interest with priority. Staff from Nakheel provided water and paper towels to the crowd as a short relief material from the scorching heat.
Sudden Increase in Demand
This new increase in demand for luxurious houses found in Dubai’s property market is not coincidental. It comes to the marketing of the luxurious properties in Dubai, which play a role in the revival of the city’s fortunes. Dubai’s luxury property market has experienced such a spectacular upturn that it clinched the top spot globally in the second quarter for transactions involving homes valued at $10 million or above, as per data from a known real estate company. Investors and businessmen of Dubai-based and other countries are doubling down. After realising hefty profits from two villas on Palm Jumeirah, Bazzari acquired a 7,000-square-foot property on Palm Jebel Ali for 19 million dirhams and is contemplating a second purchase option.
In terms of design, location, and value per square foot, Palm Jebel Ali is unparalleled. Some professionals anticipate it to be a highly profitable investment. They also expressed a huge satisfaction after they exited Nakheel’s sales centre. As for Nakheel, they chose to maintain high standards and will also release new details on the Palm Jebel Ali Villas. For now, the details of Beach Villa and Coral Villas are available.
The excitement that the Palm Jebel Ali project has generated is reminiscent of the frenzied activity seen during Dubai’s first property boom in the early 2000s. Nakheel had commenced sales for Palm Jebel Ali back in 2003, with prices then ranging from 1.8 million to 5.6 million dirhams. Astonishingly, many of those properties changed hands multiple times, even though not a single brick was laid. The global money crisis of 2008 threw a wrench into Nakheel’s grand plans, pushing the company to the brink of default and leaving numerous investors stranded. Although some have since opted for alternative Nakheel projects, others were refunded the sums they had invested, as reported by Bloomberg News.
About Palm Jebel Ali Dubai
With its reimagined design, Palm Jebel Ali is now poised to feature 80 hotels and resorts and aims to accommodate approximately 35,000 families. The starting phase of this project will have new luxurious villas and plots on four fronds of Palm Jebel Ali which are spanning an area of around twice the size of Palm Jumeirah. Some of the most exclusive and high-cost villas will have more than 12,000 square feet of area, which is almost a third of the size of the White House in the USA.
Back in the day, these properties in Dubai were priced more affordably, the reason behind this was due to the uncertainty that used to surround the completion timeline of an off-line project – according to a CEO of a real estate brokerage firm. For this housing project in Dubai, buyers are required to pay a booking amount of 20% of the property value. Then, they have to pay 40% during the construction period. The buyers will pay the rest after the project is completed in 2027.
Views of Real Estate Brokers
A real estate broker said that representing buyers is a high-stakes game. “It’s like a lottery; you grab whatever opportunity you can – according to a broker. People have waited for three hours in the queue for this project of Palm Jebel Ali. Due to the intense conditions, brokers have also showed up during the launch event of Palm Jebel Ali prepared with documents and credit card authorisations for 200,000 dirhams, while the rest of the payment gets transferred by clients remotely.
Even considering Palm Jebel Ali’s tumultuous history, potential buyers remain undeterred. Some people have also attended the sales office of Nakheel representing investors who have already owned property in Palm Jumeirah. While a client happily committed to a villa, while the others are adopting a wait-and-see approach.
Some Buyers are waiting to evaluate.
For those still on the fence, timing is everything. According to another broker, “Some people need more time to evaluate this substantial investment, especially with a hefty 24% upfront payment. They’re waiting for subsequent phases to offer a clearer picture.” Given this renewed fervour and the unyielding attraction of iconic real estate, the resumption of the Palm Jebel Ali project marks not just the rebirth of a dream but also the confirmation of Dubai’s renewed appeal as a luxury property hotspot.
Conclusion
As per some professionals in Dubai Housing, the Dubai property market is still stable and will remain like this for a long time because of Dubai’s thriving economy. It is also predicted that the prices of the housing projects are going to rise year to year basis because of the increase in demand for luxurious homes in Dubai where the buyer used their properties in Dubai as second homes or holiday homes. Not only this, but big builders are launching more and more housing projects and will also launch more projects in the future.
