Dubai's state-owned real estate developer Nakheel PJSC has announced the opening of the first batch of off-plan villas for sale on Palm Jebel Ali, with prices starting at AED 18 million (approximately US$4.9 million). The Palm Jebel Ali is a reclaimed man-made island. According to the Dubai Media Office, 80 hotels and resorts will be built on the island and 110 kilometers (68.351 miles) of coastline will be added. The project is expected to house up to 35,000 homes, featuring luxury homes and apartments. About 1/3 of public facilities will use renewable energy.
Note: Concept map of Jebel Ali Palm Island
The first batch of projects available for sale include single-family villas with 5 to 7 bedrooms, starting at 18 million dirhams (approximately US$4.9 million), with the most expensive unit reaching 31 million dirhams (approximately US$8.44 million). Buyers need to pay a 20% deposit first, the other 60% during construction, and 20% at handover.
Nakheel proposed the plan in 2003 and most of the reclamation work was completed 15 years ago. But the project was halted in 2009 due to the global financial crisis in 2008, leaving hundreds of pre-purchase buyers in limbo - some investors exchanged their purchases for other properties in Nakheel, and some received refunds.
In June this year, Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, approved a new master plan for the Palm Jebel Ali, which echoes the Dubai 2040 Urban Master Plan.
According to the developer's description, the first batch of available villa projects currently launched are mainly composed of four "palm leaves" (fronds), featuring coral villas and beach villas, each with eight different styles to choose from.
Prior to this project, Dubai launched an artificial island, the "Palm Jumeirah", which started construction in 2001. It is one of the largest land transformation projects in the world and has achieved great success. Currently, the most expensive villas and most expensive apartments sold in Dubai are located on the Palm Jumeirah.
However, after completion, the Jebel Ali Palm Island will have 7 islands and 16 "palm leaves", covering an area of 13.4 square kilometers, twice the size of the Palm Jumeirah; a total coastline of 91 kilometers, and 3 entrances.
Note: Location of Palm Jebel Ali and Palm Jumeirah Source: Google Maps
Nakheel was taken over by the government in 2011 after the government launched a $16 billion rescue plan after Dubai's real estate crash in 2009-2010.
The resurgence of the Palm Jebel Ali project coincides with a rebound in Dubai's real estate market - which began to recover in early 2021 thanks to the government's opening-up policy, with real estate prices and rents soaring.
In November last year, Nakheel received 17 billion dirhams (about 4.63 billion U.S. dollars) in financing thanks to its numerous new waterfront project construction plans.