Dubai: When might Palm Jebel Ali investors anticipate a twofold increase in their capital gains?

Palm Jebel Ali

The Palm Jebel Ali project is set to be a driving force in Dubai’s property market in the coming years, particularly given the scarcity of prime seafront properties in the market. Industry experts suggest that investors who have purchased the first set of villas from master developer Nakheel could potentially see their capital gains double within five years upon the completion of their investment.

Nakheel launched these villas with a starting price of Dh18 million in September. Due to strong demand, they subsequently released a second set of villas. The Palm Jebel Ali development currently features 10 fronds, from Frond A to J, comprising around 1,200 villas, and more fronds and villas are expected to become available.

Nakheel’s plan is to complete the entire project by 2027, encompassing over 80 hotels and resorts, along with various residential, commercial, and entertainment options. The strong demand for waterfront properties in Dubai, driven by limited supply, has led to price increases across the board.

According to Ayman Youssef, Managing Director at Coldwell Banker, investors in Palm Jebel Ali have the potential to achieve a significant return on their investment, with the possibility of a 100% capital gain. The scarcity of such luxurious properties in the primary market makes Palm Jebel Ali an attractive option for investors looking for substantial returns in a relatively short period.

Adil Akhtar, founder of Foremen Fiefdom, predicts that a villa priced at Dh18 million could bring a return on investment of approximately 35-45% over five years, based on a projected annual ROI rate of 7-9%.

Palm Jebel Ali’s significant value is expected to appreciate gradually, ensuring substantial returns on investments and contributing to the local property market’s sustainability. This development embodies prestige, exclusivity, and generous plot sizes, making it appealing to both investors and end-users.

Palm Jebel Ali is set to sustain the property market rally for the next 5-7 years, addressing the scarcity of beach access properties and diversifying available property offerings. Private developers are also expected to commence their projects on Palm Jebel Ali in 2024, aligning with the ongoing development of the island’s infrastructure.

In a market with a limited supply of prime seafront properties, Palm Jebel Ali emerges as a premium investment, attracting high demand from both end-users and investors. The development is expected to draw a diverse audience, including local, regional, and international investors and home-seekers. Private developers are also showing interest in participating in the project, given its planned diversity, including hotels, residences, retail, and entertainment facilities.

Compare listings