The second of Dubai’s palm-shaped islands is moving forward, with construction set to begin on hundreds of luxury villas. Developer Nakheel has given the go-ahead to three companies to begin building 723 homes on Palm Jebel Ali, the largest of Dubai’s artificial islands. The contracts, valued at AED 5 billion, are slated for completion by the close of 2026.
Dubai’s second palm-shaped island, Palm Jebel Ali, is moving ahead with the construction of hundreds of luxury villas. Developer Nakheel has awarded contracts worth AED 5 billion to three companies, paving the way for 723 homes to be built on the island, the largest of Dubai’s artificial archipelagos. The project is slated for completion by the end of 2026.
Ginco General Contracting, Shapoorji Pallonji Mideast, and United Engineering Construction Company have been selected to build the villas, which will range in size from 8,000 to 15,000 square feet. Around 25% of the homes will feature seven bedrooms, catering to Dubai’s demand for expansive luxury residences.
Initially launched years ago, Palm Jebel Ali faced delays following the global financial crisis in 2008, which led to a downturn in Dubai’s real estate market. The project remained on hold for years but has now been revived as the market has recovered post-pandemic. Rising property prices and rental rates, driven by an influx of new residents, have reignited interest in high-profile developments like Palm Jebel Ali.
Palm Jebel Ali is nearly double the size of the iconic Palm Jumeirah. Last year, the island attracted significant buyer interest, with people braving extreme summer temperatures to secure properties on the development.
This renewed progress comes shortly after Nakheel was integrated into Dubai Holding, a major investment conglomerate owned by Sheikh Mohammed bin Rashid Al Maktoum, Dubai’s ruler. The merger with Meydan, another prominent developer, is part of a strategy to create a “more financially efficient entity,” according to Sheikh Mohammed.
Nakheel is also exploring the establishment of a real estate investment trust (REIT). Such a move would provide investors with opportunities to invest in income-generating assets managed by one of Dubai’s most influential developers.
Palm Jebel Ali’s master plan includes 16 fronds, with the current contracts covering development on the first six. The island will add over 90 kilometers of coastline to Dubai and feature 80 hotels and resorts. Officials anticipate the development will eventually accommodate up to 35,000 families, with approximately one-third of its public facilities powered by renewable energy.
Khalid Al Malik, CEO of Dubai Holding Real Estate, highlighted the development’s potential: “It is set to contribute significantly to the emirate’s economic development, attracting investment and tourism for years to come.”
Palm Jebel Ali is poised to become a cornerstone of Dubai’s thriving property market, further cementing the city’s position as a global hub for luxury real estate and tourism.
Article reference: Financial Post.
