Rates have more than doubled in some of the most desirable areas, offering an excellent return on investment.
Dubai’s waterfront properties have seen a significant increase in recent years. This is due to high-net-worth individuals’ interest in Dubai’s residential property markets.
Prices have risen more dramatically since the pandemic. Rates in some of Dubai’s most desirable areas have more than doubled. Will the recently-launched Palm Jebel Ali – which will be twice as large as Palm Jumeirah and add 110km of waterfront to the emirate – help lower the prices for waterfront properties in Dubai?
According to industry experts, it will be some time before waterfront property prices have increased significantly since the pandemic began to stabilize or fall.
The Value and Demand for Waterfront Properties in Dubai Remain High
Property Monitor data shows that the Palm Jumeirah villa price, which is considered to be a benchmark in waterfront properties, increased by 132 percent from Dh1,803 (sqft), in 2020, to Dh4,196 (sqft), in 2023. This was a dramatic price increase, and many people have been able to cash in their property assets in recent years. Apartment prices on the Palm are up by 119 percent since 2020.
The released product type will be crucial when considering Palm Jumeirah as a blueprint for Palm Jebel Ali. If villas are a crucial product in Palm Jebel Ali due to their price increase, a competitive price will be needed to attract investors and end-users to the new district.
He does not expect this to have a significant impact on Palm Jumeirah.
The location is unique, as are the ready-to-move-in units and the iconic surroundings of Atlantis and Royal Atlantis. Also, Burj Al Arab and Marina Skyline. It may be several years before people start moving to Palm Jebel Ali. “I don’t expect it to affect waterfront property elsewhere immediately.”
Laura Adams, Residential Sales Director, Provident Realty, stated that the Palm Jebel Ali relaunch has taken place at a very favorable time and has generated significant interest.
We expect that early investors like Palm Jumeirah will benefit the most from the value of the project. There is still a lot of demand for most of the coastline due to several factors. These include a high rate of return on investment in the short term and the possibility of appreciation.
She said that the demand for beachfront property is so high that adding more properties is unlikely to impact those already in place.
Dubai’s Waterfront Property Boom Continues
The demand for waterfront properties in Dubai has experienced a remarkable surge in recent years, with prices doubling in some of the most sought-after areas. This upward trend has been primarily driven by the growing interest of high-net-worth individuals in Dubai’s residential property markets. However, the COVID-19 pandemic has significantly increased the price hike, leading to soaring rates in the city’s most desirable locations. The recent launch of Palm Jebel Ali, a development twice the size of Palm Jumeirah, spanning 110 kilometers of waterfront, raises the question of whether it will help alleviate the high prices in Dubai’s waterfront property market.
Experts in the industry believe it will take some time before waterfront property prices stabilize or decline, given the impact of the pandemic. The demand and value for waterfront properties in Dubai remain exceptionally high, making a sudden decrease in prices unlikely. Property Monitor data reveals that prices for Palm Jumeirah villas, considered a benchmark for waterfront properties, have surged by a staggering 132 percent from Dh1,803 per square foot in 2020 to Dh4,196 per square foot in 2023. Apartment prices in Palm Jumeirah have also witnessed a substantial increase of 119 percent since 2020.
When considering the future impact of Palm Jebel Ali, the product type offered will play a crucial role in determining its success as a blueprint for development. If villas are deemed essential in Palm Jebel Ali due to their price appreciation potential, offering competitive pricing will be vital to attract investors and end-users to this new district. However, it is unlikely that Palm Jebel Ali will immediately impact the value of waterfront properties in Palm Jumeirah. The uniqueness of Palm Jumeirah’s location, its ready-to-move-in units, and iconic surroundings, such as Atlantis, Royal Atlantis, Burj Al Arab, and the Marina Skyline, sets it apart and contributes to its long-term appeal.
Laura Adams, the Residential Sales Director at Provident Realty, acknowledges that the relaunch of Palm Jebel Ali has occurred at a favorable time, generating substantial interest among potential buyers. Early investors, particularly those who invested in Palm Jumeirah, are expected to reap significant benefits from the project’s overall value. The high demand for beachfront properties remains strong, and adding more properties is unlikely to significantly impact existing ones. This persistent demand can be attributed to several factors, including the short-term high return on investment and the potential for appreciation.