Dubai: As Palm Jebel Ali readies the sale of its next offplan homes – said to be the costliest to date – the island’s impact on Dubai’s overall property deals is already being felt.
In just under 40 days, combined sales of units released to date at the Palm Jebel Ali have crossed the Dh5.4 billion mark, based on official data. Of these, 20 per cent would have already been put up by buyers as down payment, as per the strict requirements governing PJA offplan 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 per cent 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.”
As of now, around 1,200 homes have been launched at Dubai’s second Palm island. (Sales of the majority of these units are in the process of being recorded in the Land Department transactions.)
So, what next at Palm Jebel Ali?
Market sources are talking about the unveiling of ‘sea-front mansions’ with private beaches, and which could push the launch prices to above the Dh50 million mark. “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.”
Property agents say another demand rush should be happening between now and December 15, with the world’s attention tuned towards the UAE and its hosting of the COP28.
The limelight will also be falling on the Dubai and Abu Dhabi property market, especially at the top end of it.
“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?
Buyers have been promised the first set of handovers from late 2027 onwards, and the payment plans on the PJA homes reflect these. Aside from the 20 per cent upfront payment, the rest of it is staggered as 10 per cent instalments across the project cycle – and then the final 20 per cent on 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.”