Dubai’s Palm Jebel Ali is recording strong buyer interest, with nearly 700 villas launched last year as part of the master development being sold out, according to analysts.

The estimates were made as developer Nakheel on Monday awarded a contract worth Dh810 million ($220 million) to complete marine works. The main road connecting the man-made island to Sheikh Zayed Road, the city’s main motorway, is also under way.

“The project which is said to be roughly three times the size of the Palm Jumeirah, and comprises 16 fronds and multiple other islands, has seen strong demand from a wide mix of wealthy European and Asian investors,” said Matthew Green, head of research Mena at Global Commercial Real Estate Services.

Each villa is being sold between Dh20 million and Dh50 million ($5.4 million and $13.6 million), he added.

The development came after Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, unveiled the new master plan for the project that will eventually span 13.4km, featuring 16 fronds and 91 kilometres of beachfront, aligning with the Dubai 2040 Urban Master Plan’s goal of expanding public beach access.

“Buyers have been snapping up homes from the early Coral and Beach launches, which offer a mix of high-end and luxury frond units with differing architectural styles,” Mr Green said.

There is a “keen interest in this Jebel Ali Development and indeed other projects in Dubai and this interest stems somewhat from the fact that on a per sq ft basis Dubai, remain the most attractive investment destination of any metropolitan city,” said Jason Hayes, chairman of Luxury Property.com, a Dubai based brokerage firm.

Buyers from countries including the UK, France, Germany, India, China, Pakistan, Saudi Arabia and Kuwait have been investing in the property at the project, he said. Detailed buyer information would probably have to come from the developer itself or the Dubai Land Department, he said.

Dubai’s property market has bounced back strongly from the coronavirus-induced slowdown, helped by government initiatives such as residency permits for retired and remote workers.

Dubai’s luxury home market hit record levels in 2023 as sales of $10 million-plus homes nearly doubled to $7.6 billion, performing better than London and New York, Knight Frank said this year.

Prices have also been rising at the Palm Jebel Ali, said Prathyusha Gurrapu, head of research and consulting at Cushman and Wakefield Core.

The project has been recording between 3 to 5 percent quarter-on-quarter price increase since the fourth quarter of last year from Dh2,578 per square foot to Dh2,717 per square foot in the first quarter to Dh2,794 by the end of the second quarter, she said.

The contract for dredging, land reclamation, beach profiling and sand placement, directly supporting the construction of villas across all fronds at the project was awarded to Jan De Nul Dredging, Nakheel said.

Jan De Nul is a Belgium-based contracting company specialised in marine construction. It is expected to complete the entire scope of marine works at Palm Jebel Ali in just over two years.

“Dubai’s coastline is almost fully built out, so the opportunity to secure beachfront homes on a development like the Palm Jebel Ali is understandably commanding a high level of attention from buyers, particularly the international elite who continue to jostle for access to Dubai’s cosmopolitan and sun-sea-sand lifestyle,” said Faisal Durrani, partner and head of Middle East research at Knight Frank.

During H1 this year, “Dubai registered 190 home sales at over $10 million, with the Palm Jumeirah (60 deals) ranking as the top submarket for ultra-luxury home sales. The Palm Jebel Ali (14 sales) ranked in second place”. For More Details Visit FajarRealty

Source: The National News

31st August 2024