The Palm Jebel Ali sales relaunch is about to get underway, and predictions are that this will be the turning point in this year’s growing Dubai real estate market. Adding a completely new chapter to the history of Palm Dubai for the decade to come.
The Palm Jebel Ali villas on the market will start at Dh18 million, with built-up spaces ranging from 7,000 to 20,000 square feet, according to multiple real estate firms. When the first villas are released, there will be an “intense rush” as wealthy investors compete for the greatest locations along the shore.
This island, where much of the initial construction has already been completed, will double the area of the Palm Jumeirah and extend Dubai’s shoreline by 110 kilometers. Mid-rise apartment structures will also be present on the new Palm, and their sales should coincide with those of the best villa locations.
In recent days, estate brokers have been discussing the Palm Jebel Ali choices with their clients, minimizing the possibility of any delays in their purchasing selections. According to the agents, many purchasers want to “sign on the dotted line right away.”
Dubai announced a new blueprint for the Palm Jebel Ali, which was first introduced in the middle of the 2000s, earlier this year. However, after the 2008 Global Financial Crisis, the project was shelved.
But now, “This is the ideal moment for the Palm 2 to return,” said an estate agent. “Land availability on the Palm Jumeirah is scant, and there are legions of potential investors wanting to own property/plot on the Dubai beachfront.
“Palm Jebel Ali is coming to market at the right time. We know of many investors who are holding back from buying in any other project just because they want to be among the first on the Palm Jebel Ali relaunch.”
Industry insiders say that sales at the Palm Jebel Ali will particularly continue the momentum at the high-end of the Dubai real estate market. Because the majority of the accessible lands have already been developed and sold, there haven’t been many fresh releases in this area lately.
Justified premium
The new residences on the second Palm have a built-in premium because of the high demand for properties on the Palm Jumeirah, which in recent years has fetched record deals including a Dh600 million sale. That won’t deter any potential purchasers. “Typical Palm buyers are not ones to look at costs – they only want to know what those prices will bring to their homes,” said the CEO of one of the biggest luxury brokerages in the city.
What’s Palm Jumeirah selling at?
The average price of Palm Jumeirah villa deals for the year to date is Dh25.5 million, according to the statistics portal DXBInteract.com. That represents a value increase of about 40% from one year earlier. The median price per square foot equals Dh3,638, which represents an almost 40% increase year over year. More project debuts and sales will take place in the upcoming weeks on the first Palm, including the eagerly anticipated one from a second Armani-branded venture in Dubai.
Wait and watch
The severe lack of ultra-luxury villas for sale in Dubai is the main element that will favor the Palm Jebel Ali. Investors had to wait to invest their money or go elsewhere when Knight Frank brought this up in a recent market update.
“This gap is what the Palm Jebel Ali villa sales will fill,” said an estate agent. “Upsized villas/mansions with ample beachfront in Dubai will continue to be the hottest ticket in the property market.”