Dubai’s Palm Island Real Estate Project Relaunched with Starting Price of $4.9 Million
Dubai’s long-stalled Palm Island real estate project has been re-launched, offering buyers a chance to own luxurious properties starting at $4.9 million for a single building. Nakheel PJSC, the state-owned real estate developer, announced the opening of the first batch of off-plan villa sales on Palm Jebel Ali.
The Palm Jebel Ali is a reclaimed man-made island and boasts an ambitious development plan. The Dubai Media Office has revealed plans for the construction of 80 hotels and resorts and the addition of 110 kilometers of coastline. The project aims to provide housing for up to 35,000 homes, including high-end villas and apartments, with approximately one-third of public facilities utilizing renewable energy sources.
The initial release of properties includes single-family villas with 5 to 7 bedrooms, starting at 18 million dirhams ($4.9 million), with the most expensive unit priced at 31 million dirhams ($8.44 million). Buyers are required to pay a 20% deposit upfront, followed by 60% during construction, and the remaining 20% upon handover.
The Palm Jebel Ali project faced significant setbacks after being proposed in 2003, with the majority of reclamation work completed 15 years ago. The global financial crisis of 2008 halted the project in 2009, causing distress for several pre-purchase buyers. Some investors opted to exchange their purchased properties for others within Nakheel, while others received refunds.
In June of this year, Dubai’s Vice President and Prime Minister, Mohammed bin Rashid Al Maktoum, approved a new master plan for the Palm Jebel Ali, aligning it with the Dubai 2040 Urban Master Plan.
Nakheel described the first batch of available villa projects as encompassing four “palm leaves” (fronds), showcasing coral villas and beach villas in eight different styles.
The Palm Jebel Ali is not the first artificial island project in Dubai. The earlier Palm Jumeirah, initiated in 2001, has been a resounding success, hosting some of the city’s most luxurious and sought-after properties.
However, the Jebel Ali Palm Island project outshines its predecessor with 7 islands and 16 “palm leaves,” covering an area of 13.4 square kilometers, twice the size of the Palm Jumeirah. It will boast a total coastline of 91 kilometers and feature three entrances.
Nakheel faced financial challenges following the real estate crash of 2009-2010 and was subsequently taken over by the government in 2011 through a $16 billion rescue plan.
The resurgence of the Palm Jebel Ali project coincides with the recovery of Dubai’s real estate market, which has experienced a significant rebound in 2021 due to the government’s opening-up policies, resulting in soaring property prices and rents.
Last year, Nakheel secured financing of 17 billion dirhams ($4.63 billion) for its various waterfront project construction plans.
It is important to note that this article does not provide investment advice and should only be used as a reference. The stock market carries risks, and individuals should exercise caution when making investment decisions.