Dubai: The two Palm islands are taking a firm grip on the super-luxury end of Dubai’s property market, with Palm Jebel Ali now accounting for 50 per cent of overall city-wide sales in the Dh18 million to Dh20 million price range. All the more remarkable because the Palm Jebel Ali in its revised masterplan launched sales just 3 months ago.
if one were to stretch the price range, then Palm Jebel Ali would be making up a whopping 80 per cent of Dubai's Dh18 million to Dh30 million homes.
At the same time, Palm Jumeirah has a lock on 32 per cent of homes that fetched values of Dh45 million and over during 2023, according to new data from Reidin-GCP.
Dubai’s first Palm island should see further action with developers launching sales of a Dh600 million penthouse – aiming to be Dubai’s costliest such - and of an Armani project (Dubai’s second featuring the iconic luxury label after the one at Burj Khalifa).
In perfect sales 'harmony'
Just as important, the two Palm islands are not competing between themselves for buyers. “Palm Jumeirah home prices had declined slightly prior to the launch of Palm Jebel Ali - but have since made a turnaround,” says the Reidin-GCP report.
Based on market feedback, more than 500 villas have been sold at the Palm Jebel Ali so far. There is a fresh batch of pricey homes that are in the market right now at Dubai’s big new luxury residential destination, again with prices from Dh18 million. Not just that, Palm Jebel Ali has sold 541 villa plots, and property market sources say this will continue to be a key feature of overall demand for the two Palms.
“Luxury home investments in Dubai are not heading for any softening in demand for the near future,” said an estate agent. “If anything has changed, it’s about the choices that are available for buyers, whether that’s the first Palm or the second.”
Still a lot happening
In 2023, Palm Jumeirah property values went through another 20-30 per cent price rise, helped along by recent offplan launches that have come with significant mark ups. In fact, “Palm Jumeirah prices reached their highest point - Dh6,039.58 per square foot - in the last 12 months after Palm Jebel Ali’s launch,” says the Reidin-GCP findings.
The recent offplan launches at Palm Jumeirah are looking at 2026-27 completions, which is also the likely timeframe for the first set of completed homes on the Jebel Ali island.
This also creates possibilities for ready homes on Palm Jumeirah to be up for renewed demand. According to market chatter, potential sellers are already fine-tuning their likely asking prices. "All signs point to a further double-digit gain in Palm Jumeirah values, especially on apartments, this year" said a broker. "That's what sellers are waiting for - the right moment and the right exit price."
