Palm Jebel Ali has 'most competitive' prices for Dubai waterfront homes

Dubai: As more super-luxury homes release on Palm Jebel Ali, property buyers are homing in on one price advantage compared to what it would cost them for a Palm Jumeirah home.

According to data from fam Properties, the average per square foot (psf) for a waterfront home on Dubai’s second Palm would be around Dh2,500 compared to the current average of Dh8,000 psf on Palm Jumeirah. Which means there is plenty of room for Palm Jebel Ali investors to see the value of their properties grow by.

“In the past three years alone, Palm Jumeirah has seen villa values surge over 50%,” said Firas Al Msaddi, CEO of fam. “In markets like Dubai, waterfront homes often command 30% to 50% premiums over similar inland homes. This is simply because demand far outstrips the limited supply.”

It was late 2023 that Dubai relaunched the PJA with a completely new masterplan, with the island destination being more than twice the size of Palm Jumeirah. Since then, the master-developer Nakheel has come up with regular releases of more homes on the PJA, with top-line ones currently in the market for upwards of Dh30 million.

“With the final phase of ultra-luxury villas about to be introduced, this is the last opportunity to acquire six and seven-bedroom waterfront residences directly from the (master)-developer,” said Al Msaddi.

According to industry sources, private developers have been buying land for future projects. Once they launch, that too will set new pricing benchmarks on the PJA.

Where Palm Jebel Ali prices check in now

• Palm Jebel Ali villa plots are often double the size of those on Palm Jumeirah - 21,000 square feet vs. 10,500 square feet - giving buyers more space and exclusivity, according to fam Properties.

• Average price per square foot for built villas are around Dh3,000 compared to Dh9,000 on Palm Jumeirah.

• Prime waterfront plots on Palm Jebel Ali are at the Dh2,500 per square feet, compared to Palm Jumeirah’s Dh8,000.

• Entry prices on the PJA are about 50% lower than Palm Jumeirah for comparable ultra-luxury villas.

• Palm Jebel Ali offers buyers 3- to 4-year payment plans - a 'key advantage' over Palm Jumeirah where only resale transactions are available with full upfront payment.

“For investors, this establishes a clear principle - waterfront real estate isn’t just about scenic views and exclusivity," said Al Msaddi.

"It’s about superior long-term returns, which is the obvious attraction of Palm Jebel Ali.”