DAMAC
Islands
A lagoon community of townhouses, sold before it is built.
DAMAC Islands is a master community in Dubailand that DAMAC launched in November 2024, its sixth master development. The idea is a gated estate of townhouses and villas set around lagoons, waterfalls and planted walkways, with clusters named after tropical islands such as Bali, Bora Bora, Fiji and the Maldives. A second phase, DAMAC Islands 2, added clusters named after Caribbean and Pacific islands: Antigua, Bahamas, Barbados, Bermuda, Cuba, Maui and Tahiti.
It sits close to Emirates Road (E611), about 15 minutes from Global Village by Bayut's estimate. Everything is still under construction. The product is family housing: four-bedroom townhouses of about 2,185 sq ft, five-bedroom townhouses and twin villas, and six-bedroom villas, according to Bayut's project review.
From January to September 2026 the Dubai Land Department registered 3,770 sales worth AED 12.7bn here, and Cavendish Maxwell named DAMAC Islands 2 the leading off-plan villa and townhouse project in the first half of 2026 with 3,192 transactions.
DAMAC Islands had its launch rush in early 2026 and then slowed sharply. DLD registered 2,823 sales in the first quarter, 566 in the second and 381 in the third. Prices did not fall with the volume: the median villa price per sq ft was AED 1,822 in the first quarter and AED 1,854 in the third (DLD, Jan to Sep 2026). Citywide, ValuStrat's villa index was 1.7% lower year on year in August 2026, the first annual villa decline in five years.
Data as of September 2026. Sources are listed at the end of this guide.
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Illustrative imageRight for you.
Not right for everyone.
DAMAC Islands is a strong recommendation for the right profile. It's also wrong for investors whose objective doesn't match what the zone delivers. Here is our honest read.
- You want a new four or five-bedroom family house for AED 2.7M to AED 4.2M
- You can wait for handover, which Bayut puts at 2030 for DAMAC Islands 2, and pay through a milestone plan
- You want a property priced above the AED 2M Golden Visa value; for an off-plan unit, confirm eligibility with DLD first
- You plan to live in it or let it to a family on a long lease after completion
- You value a single-developer gated estate with water features and shared amenities
- You need rental income before 2030
- You want to resell within two or three years: thousands of near-identical townhouses hand over in the same years
- You want a short drive to Downtown, DIFC or the beach every day
- You are looking for an apartment or a budget under AED 2.5M
The busiest clusters
in 2026.
Prices are DLD medians for January to September 2026, almost all off-plan purchases from the developer. Bayut reported four-bedroom townhouses in DAMAC Islands 2 from AED 2.7M on a 20/55/25 plan.
What we actually think about DAMAC Islands.
DAMAC Islands is priced for families who want a new house with a garden and a lagoon for under AED 3M. The median four-bedroom sold for AED 2.82M in 2026, which is also above the AED 2M Golden Visa value (confirm off-plan eligibility with DLD). That combination explains why it sold so fast at launch.
The other side of that speed is supply. 3,432 villas and townhouses were registered here in nine months, 2,224 of them four-bedroom homes. When they complete, resale buyers and tenants will have a lot of choice inside the same gates, and quarterly sales already fell from 2,823 to 381 over 2026. Plan to hold beyond handover.
If you buy, buy position: a lagoon-facing or corner plot, or a larger five-bedroom, will stand out in a resale market full of mid-terrace four-bedrooms. And read the payment plan carefully, because Bayut reports 75% of the price paid before handover on DAMAC Islands 2.
When will DAMAC Islands be completed?
The community is under construction. Bayut puts completion of DAMAC Islands 2 in 2030; Phase 1 clusters have their own handover dates. Ask for the handover date written in the sale agreement of the specific cluster.
How much does a townhouse in DAMAC Islands cost?
From January to September 2026 the median four-bedroom sold for AED 2.82M and the median five-bedroom for AED 4.16M, according to DLD data. One in ten homes sold for under AED 2.69M.
Does a DAMAC Islands townhouse qualify for the Golden Visa?
The Dubai Land Department issues the Golden Visa, a permit for 10 years, for property bought for AED 2M or more, wholly owned in your name, in one or more properties. If the property is mortgaged, at least AED 2M of the price must already be paid. For an off-plan unit, confirm eligibility with DLD before you rely on it. Almost every sale here is above AED 2M.
What rental yield will DAMAC Islands give?
There is no measured yield yet, because no homes are finished and no leases are registered. Dubai villas and townhouses yielded about 5% gross on average in H1 2026 according to Cavendish Maxwell, for reference only, before service charges.
Can I get a mortgage on an off-plan townhouse here?
UAE Central Bank rules cap off-plan lending at 50% of the value. Many buyers here pay through the developer's plan during construction and refinance, if needed, at handover.
Data as of September 2026
- Dubai Land Department open data, sale transactions, 1 Jan to 30 Sep 2026
- Gulf Business, DAMAC Islands officially launches, November 2024
- Bayut, DAMAC Islands 2 project review, 28 Nov 2025
- Cavendish Maxwell H1 2026 (Zawya), H1 2026
- ValuStrat VPI via Khaleej Times, August 2026
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