Dubai: How soon will an extensively revised and reworked Palm Jebel Ali come to market and attract new and existing investors to Dubai? The anticipation levels are already building up as a new Dubai ‘waterfront city’ charts out a course to take on board property buyers, hotel developers and operators, tourists, et al.
The core infrastructure of the island – double the size of Palm Jumeirah - already exists, in the form the trunk, the crescent and the fronds. “With Palm Jebel Ali, Dubai only needs to fine-tune the construction and project management side of it,” said a consultant. “Having the integral infrastructure already in place will work to everyone’s advantage. There will be a lot to build.”
Property market sources say that some developers have already been sounding out about possible land investments, while others are awaiting the release of the masterplan and then work their way into it. Some have said ‘expressions of interest’ are being submitted, but no official word has come in.
Launch timeframe?
Once the masterplan is done, how soon will the real action start? Of new offplan launches for a future home on the second Palm?
Given the momentum and international appetite for Dubai real estate, I anticipate the initial offerings coming to the market Q3-2023. I anticipate the initial per square foot price to be no less than Dh4,000.
Developers will obviously be benchmarking what’s happening at Palm Jumeirah, where property value gains have rocketed well over 30-35 per cent since mid-2021. And continues to show a lot of staying power, helped by a series of deals – on ready and being built homes – that have pushed per square foot prices to Dh7,000 plus levels. Plus, there have been deals getting struck at Dh600 million.
Market players are clear that once new Palm gets started on launches, it will not set off a Jumeirah vs Jebel Ali pull on investors. What Dubai is creating is more waterfront living possibilities – building on the influence Palm Jumeirah keeps exerting. In spades.
As for Palm Jebel Ali, “it is another anchor in Dubai’s evolutionary journey brought back in style,” said Faisal Durrani, Partner – Head of Middle East Research at the consultancy Knight Frank.
The drought of beachfront property will linger for a little while longer - but very positive to see the Palm Jebel refined and reinvented for Dubai 3.0.
A race will begin
Who will be among the handful of initial developers launching at Palm Jebel Ali? All the big names are definitely confirming interest – but not letting on what they plan to do about it.
The master-developer, Nakheel, would obviously have first dibs at launching a signature project, and that’s when the rush will start.
Knight Frank in a recent report reckons there is no dearth of world’s millionaires/billionaires wanting to invest in Dubai. This year, the consultancy reckons another $2 billion plus landing from these buyers, who would love to have another option open up next to Palm Jumeirah.
“This type of giant project will attract investment companies from all over the world to invest in the various fields provided by it,” said Sheridan.
“Thus, we will witness an increase in the number of visitors, tourists, and those wishing to reside and invest. Today, we are seeing a comprehensive and integrated project that cannot be reduced to a real estate development project.
“It is an integrated economic opportunity that will provide opportunities for all sectors - tourism, luxury real estate, trade, services, and others.”
For now, investors are waiting for the go-ahead to start the buying on the Palm Jebel Ali.
