Dubai’s property market is set to continue its rally with the Palm Jebel Ali project playing a significant role, thanks to the limited supply of prime sea/waterfront properties. Industry executives believe that investors in Nakheel’s launch of the first set of villas could potentially double their capital gains in five years. Nakheel, the developer behind the Palm Jumeirah and Palm Jebel Ali, released villas with a starting price of Dh18 million in September, and after strong demand, the second set of villas was also released.

The Palm Jebel Ali project is expected to be fully completed by 2027 and will include more than 80 hotels and resorts, along with various residential, commercial, and entertainment options. The scarcity of such luxurious properties in the primary market makes Palm Jebel Ali an attractive option for investors looking for sizable returns in a short period of time.

Adil Akhtar, founder of Foremen Fiefdom, projects that a villa launched at Dh18 million could bring a return on investment (RoI) of approximately 35-45 percent over five years, based on a general RoI rate of 7-9 percent increase per year. The overwhelming response to Palm Jebel Ali is reminiscent of Dubai’s property boom before the 2008-2009 financial crisis, and the project is expected to sustain the property market rally in the long run.

In addition to financial returns, Palm Jebel Ali offers prestige, exclusivity, and generous plot sizes, making it attractive to both investors and end-users. With limited options for private villas with beach access available, Palm Jebel Ali addresses the scarcity of beach access properties and diversifies the available property offerings, contributing to the overall sustainability of the property market.

Demand for Palm Jebel Ali villas on the secondary market remains robust, driven by their luxury and exclusivity. Prices for 5-7 bedroom villas on Palm Jebel Ali are currently significantly lower than comparable properties on Palm Jumeirah, making them a cost-effective investment. The combination of scarcity and the allure of beachfront properties has led to heightened demand, and substantial returns on investment are anticipated in the secondary market as well.

Palm Jebel Ali is expected to attract a diverse audience, including local, regional, and international investors and home-seekers. Private developers have also shown interest in participating in the project, with plans to commence their own projects on Palm Jebel Ali in 2024. The development’s planned diversity, including hotels, residences, retail, and entertainment facilities, has piqued the interest of private developers, further solidifying Palm Jebel Ali as a crucial player in Dubai’s real estate landscape.