The island’s influence on Dubai’s overall real estate transactions is already being felt as Palm Jebel Ali prepares to sell its upcoming off-plan residences, which are rumored to be the most expensive to date.
According to official figures, the total sales of units released at the Palm Jebel Ali in less than 40 days have surpassed Dh5.4 billion. Twenty percent of these would have already been paid for as a down payment by the buyers in accordance with the strict rules governing PJA off-plan sales.
‘This means that actual total sales value is closer to Dh1 billion’ in less than 2 months since the project was relaunched, according to a new report by Reidin-GCP.
Not just that, ‘more than 10 percent of all property sales in Dubai with values over Dh18 million have come from Palm Jebel Ali. This is likely due in large part to declining sales seen in the luxury communities that typically see heavier volumes, which makes Palm Jebel Ali’s strong debut all the more impressive.”
Approximately 1,200 houses have been launched at Dubai’s second Palm Island as of right now. (Transactions with the Land Department are now being documented for the sales of most of these units.)
So, what next at Palm Jebel Ali?
According to market insiders, “sea-front mansions” with private beaches are set to be unveiled, potentially driving up launch costs beyond Dh50 million. “Until now, the Palm Jebel Ali price range has been between Dh18 million to Dh45 million, and the master developer has been careful with testing the demand for these uber-luxury homes,” said an estate agent.
“The imminent launch of the first ‘mansions’ on the island will take pricing possibilities to the next level.”
With the world’s attention focused on the UAE and its hosting of COP28, real estate agents predict that there will be another surge in demand between now and December 15.
The real estate markets in Dubai and Abu Dhabi will also be under the spotlight, particularly the upper echelons of the market.
“The composition of Palm Jebel Ali’s transactions so far reveals that it will join the likes of Palm Jumeirah and Bluewaters Island in the highest class of Dubai’s luxury residential offerings,” says the Reidin-GCP report. “All transactions have been five-, six- or seven-bedroom villas in excess of Dh18 million, reaching as high as Dh45 million.”
When will these homes be delivered?
The payment plans for the PJA homes take into account the first set of handovers that buyers have been promised will begin in late 2027. Except for the 20% down payment, the remaining amount is spread out over the course of the project as 10% installments, with the remaining 20% due at handover.
“There have been no Palm Jebel Ali island home sales that provide post-handover payment possibilities,” said an estate agent. “The developer is maintaining a tight construction schedule – and it helps that 20 per cent is already going into escrow.
“As new releases come in, Palm Jebel Ali will continue to dominate the top end of the Dubai property market. It will be difficult to break that hold.”