Relaunch of Palm Jebel Ali shows ‘sheer demand’ for Dubai property

Megaproject halted in 2009 set for relaunch as value of beachfront properties rise 300 per cent in two years

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.

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.

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.
“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.