Image credit: Supplied
Construction activity on Palm Jebel Ali is picking up dramatically as developers look to make it the next big luxury location.
This is according to real estate agency fäm Properties in a recent report.
The Palm Jebel Ali project has been revived after years of quiet. Construction began on the project back in 2002 and it was originally planned to be completed by mid-2008.
However, the Global Financial Crisis (GFC) stalled the project and it was subsequently relaunched last year.
The revival comes amid a buoyant property sector in Dubai, in which prices, especially in the residential segment, have been on a tear with the emirate experiencing a 36 per cent increase in sales volumes in 2024, according to data from fäm Properties.
Now, the Palm Jebel Ali, which is 50 percent larger than the Palm Jumeirah, is expected to be another bright spot in the market.
Firas Al Msaddi, CEO of fäm Properties, says the palm-shaped island is set to become the next major destination for luxury real estate, offering more spacious and affordable waterfront properties with lower initial costs and price per square foot.
He says there are five key reasons for this:
- Palm Jebel Ali villa plots are often double the size of those on Palm Jumeirah – 21,000 sqft vs 10,500 sqft – giving buyers more space and exclusivity.
- Average price per square foot for built villas are around Dhs3,000 compared to Dhs9,000 on Palm Jumeirah.
- Prime waterfront plots on Palm Jebel Ali average Dhs2,500 per sqft, compared to Palm Jumeirah’s Dhs8,000 per sqft.
- Entry prices are approximately 50 per cent lower than Palm Jumeirah for comparable ultra-luxury villas.
- Palm Jebel Ali offers buyers 3 to 4-year payment plans: a key advantage over Palm Jumeirah where only resale transactions are available with full upfront payment.
Palm Jebel Ali growth potential
“This is the last opportunity to acquire six and seven-bedroom waterfront residences directly from the developer,” Al Msaddi said.
He went further to explain the strategic plans:“Once this phase is complete, these villas will be available only on the secondary market, where resale demand is expected to drive prices significantly higher”.
“Major announcements will further drive investor interest and demand, with an influx of global high-net-worth buyers intensifying competition,” said Al Msaddi.
Experts say this will increase demand for Palm Jebel Ali as it nears completion, driven by its lower entry prices.
Comparison of Dubai’s Palm Islands
The key difference between Palm Jebel Ali and Palm Jumeirah is their scale and stage of development.
Palm Jebel Ali boasts a land area of 147 million square feet and a 110 km coastline, which is double the size of Palm Jumeirah’s 61 million square feet and 78 km shoreline, according to the market analysis by Firas Al Msaddi.
Palm Jumeirah is a well-established and residential leisure hub, accommodating around 25,000 people in luxury homes which includes waterfront villas and apartments, comprehensive retail destinations, leisure attractions, and marinas, creating a vibrant lifestyle destination within Dubai.
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