Stock - Palm Jumeirah
Buyer interest for Palm properties and plots is soaring, and it is getting reflected in the asking prices too. Image Credit: Gulf News Archive

Dubai: Even plot sales on the Palm are fetching record numbers now.

A 671,326 square feet area right next to the super-luxury resort Zabeel Saray was bought by a European investor for Dh330 million. This makes it the highest recorded for a plot in Dubai so far this year, as more signs emerge of increased demand for prime real estate in the city.

“This was one of only 40 plots marked for hotel/mixed-use projects on the Palm’s Crescent – and one of the last such still available,” said Shibu Raj of Dynamic Real Estate, the brokerage firm that transacted the deal. “The plot has been lying undeveloped for a while and any new project on it will add a lot of value to the Palm.” (The seller, who wished to remain anonymous, acquired the land in 2017.)

Most of the commercial plots on the Palm have already been developed on, with the biggest among them being close to 1 million square feet. The buyer of the Dh330 million plot has not revealed any plans so far on what could come up there. In recent weeks, the Palm has witnessed top-of-the-line villas fetching Dh100 million plus and involving new investors to the Palm - and Dubai.

Shibu Raj, Dynamic Real Estate
Shibu Raj of Dynamic Real Estate: "The bidding for the plot was intense and it was finally won by an overseas investor. Across the Palm, there are more signs of values starting to make a strong recovery." Image Credit: Virendra Saklani/Gulf News

Strong bidding

“There was heavy competition among potential buyers,” said Raj. “Our investor was finally able to seal the deal for Dh330 million, making him the only international investor among all the other local bidders.”

The Palm has in the recent past seen more additions, including The View, which is the highest point on the island. Other signature projects are nearing completion, most notably the Royal Atlantis Resort and Residences.

Recently, Dynamic Real Estate was part of a villa sale on the Palm that was sealed for Dh73 million. The five-bedroom home on the F frond has a built-up area of 11,000 square feet. "Even apartments on the Palm are feeling the pull of demand - Shoreline apatrments that were earlier listing at Dh2.1 million are once again breaching the Dh3 million level." 

Anchored to the Palm
Dynamic Real Estate has a lot of history tied to the Palm. Back in 2001 when the island was still taking shape, the firm became the first to sell a villa there in the secondary market.

"The original price from the developer Nakheel was Dh4.5 million for the Signature Villa and we sold it for a 30 per cent premium," said Shibu Raj. "We have the papers showing that was the first secondary market transaction on the Palm. The same villa would cost more than Dh70 million at today's market prices."