Dubai’s second palm-shaped island is set to become home to hundreds of upscale villas as the developer moves forward with construction plans. Nakheel Properties, a state-owned entity, has awarded three contracts worth a total of AED 5 billion to build 723 villas on Palm Jebel Ali. The island, which is the largest of Dubai’s artificial islands, will see the project completed by the end of 2026, according to a company statement.
The contractors, Ginco General Contracting, Shapoorji Pallonji Mideast, and United Engineering Construction Company, have been approved to start the villa construction. These homes will range in size from 8,000 to 15,000 square feet, with around 25% of them designed with seven bedrooms.
Palm Jebel Ali, once stalled after the 2008 financial downturn, is now back in action as Dubai’s property market experiences a strong recovery post-pandemic. The rebound, fuelled by rising real estate prices and a growing population, has revived interest in this ambitious development.
The island, almost double the size of Palm Jumeirah, saw a surge of interest last year as buyers lined up in the heat to purchase properties. This latest development is further evidence of the robust performance of Dubai’s real estate sector. It follows Nakheel Properties’ merger with Dubai Holding, a major investment group under the leadership of Sheikh Mohammed bin Rashid Al Maktoum. The move is aimed at creating a more efficient organisation, combining Nakheel with another developer, Meydan, under a single umbrella.
Nakheel is also reportedly exploring the creation of a real estate investment trust (REIT), which would give investors access to key income-generating properties managed by the firm.
Palm Jebel Ali is set to include 16 fronds in total. The newly awarded contracts will focus on developing the first six. The island is part of a larger plan that envisions 80 hotels and resorts, adding over 90 kilometres to Dubai’s coastline. Officials expect the island to accommodate up to 35,000 families, with a portion of its infrastructure powered by renewable energy.
Khalid Al Malik, CEO of Dubai Holding Real Estate, noted the project’s potential to significantly boost Dubai’s economy by attracting investment and tourism for years to come.
Original article reference: Bloomberg.
