In less than 2 months, Palm's new "Palm" Jebel Ali has seen sales reach AED 5 billion

A new man-made island is ready for a new round of launches for waterfront mansion sales.

Whereas Palm Jebel Ali (PJA) is preparing to sell the following homes under construction, which are considered to be the most expensive to date, the impact of sales on the island on overall real estate transactions in Dubai is already being felt.

According to official figures, in less than 40 days, the cumulative sales of homes that have come on the market to date in Palm Jebel Ali have surpassed the AED 5.4 billion (US$ 1.47 billion) mark. Of this, 20% would have already been paid by buyers as down payment under the strict requirements governing PJA sales during the construction phase.

"This means that the actual total value of sales has approached AED 1 billion (US$ 270 million)" in less than 2 months since the island project was relaunched, according to a new Reidin-GCP report.

Moreover, "more than 10% of all real estate sales in Dubai worth more than AED 18 million (US$ 4.9 million) are from Palm Jebel Ali." This is likely largely due to lower sales in high-end communities, which have traditionally seen higher volumes, making Palm Jebel Ali's strong debut even more impressive."

To date, some 1,200 apartment buildings have been built on Dubai's second 'palm island'. Sales of most of these apartments are in the process of being registered with the Land Department.

So, what's next?

Market sources say the opening of "beachfront mansions" with private beaches could push starting prices above the AED50 million (US$13.61 million) mark. "Palm Jebel Ali's price range so far has been between Dh18 million and Dh45 million (US$4.9 million to US$12, 25 million) and the main developer has been carefully testing demand for these ultra-luxury homes," says a real estate agent.

"The imminent launch of the first 'mansions' on the island will take pricing opportunities to a new level," he adds.

Real estate agents say there should be a new surge in demand for property between now and December 15, when the world's attention will be on the UAE and the COP28 venue.

The Dubai and Abu Dhabi real estate market, especially its upper price segment, will also be in focus.

"The composition of Palm Jebel Ali transactions so far shows that the island will soon join locations such as Palm Jumeirah and Bluewaters Island in the top end of Dubai's luxury residential offerings," Reidin-GCP said in the report. - "All transactions were for five, six or seven-bedroom villas priced above AED 18 million (US$ 4.9), up to AED 45 million (US$ 12, 25 million)."

When will these homes be delivered?

Buyers have been promised that first delivery is scheduled for late 2027, and the payment plans for the homes at Palm Jebel Ali reflect this. Apart from a 20 percent down payment, the rest is spread out in 10 percent payments throughout the project cycle and then the last 20 percent at handover.

"As far as payment plans for off-plan housing at Palm Jebel Ali Island are concerned, there is no option for full payment upon completion," says the real estate agent. - "The developer is adhering to a tight construction schedule, which is being helped by the 20% of escrow excores already placed in escrow accounts."

"Palm Jebel Ali will continue to dominate the upper price segment of the Dubai real estate market as new developments come up," experts summarize.