Dubai: The stage is set for the Palm Jebel Ali sales relaunch, with suggestions that this would be the defining moment for the booming Dubai property market this year. And creating a brand new chapter of the Palm Dubai story for the decade to come.
Multiple real estate agents confirm that pricing of the Palm Jebel Ali villas on sale would start from Dh18 million, with built up areas of 7,000-20,000 square feet. The rush for the initial villa releases will be ‘intense’ as wealthy investors seek out the best spots by the beachside.
This island, where already much of the initial structure is in place, will add 110 kilometers to the Dubai coastline and be twice the size of the Palm Jumeirah. The new Palm will also have its share of mid-rise apartment buildings, and sales of which should follow those of the prime villa spots.
Estate agents have been communicating the Palm Jebel Ali options to their clients in recent days, and reduce the chances of any delays to their buying decisions. Many buyers want to ‘sign on the dotted line immediately’, the agents add.
Wealthy investors from the world over want to be among the first buyers of the revised Palm Jebel Ali. This is the biggest thing to happen in Dubai property this year
It was earlier this year that Dubai confirmed a revised masterplan for the Palm Jebel Ali, which was launched in the mid-2000s. But the project was put on hold once the 2008 Global Financial Crisis struck.
But now, “This is the ideal moment for the Palm 2 to return,” said an estate agent. “Land availability on the Palm Jumeirah is scant, and there are legions of potential investors wanting to own property/plot on the Dubai beachfront.
“Palm Jebel Ali is coming to market at the right time. We know of many investors who are holding back from buying in any other project just because they want to be among the first on the Palm Jebel Ali relaunch.”
Industry sources add that Palm Jebel Ali sales will specifically extend the momentum at the luxury end of the Dubai property space. Currently, this space has seen limited new launches because most of the available areas have already been built and sold.
Given the demand for properties on the Palm Jumeirah – which in recent years has fetched record deals, such as a Dh600 million sale – the new homes on the second Palm come with a built in premium. That will not deter any buyers. “Typical Palm buyers are not ones to look at costs – they only want to know what those prices will bring to their homes,” said the CEO of one of the biggest luxury brokerages in the city.
What's Palm Jumeirah selling at?
According to the DXBInteract.com data portal, Palm Jumeirah villa deals are averaging Dh25.5 million in the year-to-date. That's a near 40 per cent jump in value from a year ago. The median price per square foot works out to Dh3,638, which too comes to a near 40 per cent year-on-year increase. Coming weeks will see more project launches accompanied by sales on the first Palm, including the much-awaited one from a second Armani branded venture in Dubai.
Wait and watch
The biggest factor that will go in the Palm Jebel Ali's favour is the acute lack of super-luxury villas for sale in Dubai. This has been pointed out by Knight Frank in a recent market update, which has meant that investors had to wait or look elsewhere to put those funds in.
"This gap is what the Palm Jebel Ali villa sales will fill," said an estate agent. "Upsized villas/mansions with ample beachfront in Dubai will continue to be the hottest ticket in the property market."