Palm Jebel Ali, Dubai’s latest island development, has made waves in the real estate market, boasting an impressive Dh5.4 billion in home sales within a mere 40 days. The island’s impact on Dubai’s real estate transactions is already notable, especially as it gears up to unveil its upcoming off-plan residences, rumored to be the most expensive to date.

According to official figures, more than 10 percent of all property sales in Dubai, with values exceeding Dh18 million, can be attributed to Palm Jebel Ali. This success is particularly remarkable given the declining sales in luxury communities that traditionally see higher volumes.

The island’s debut showcases a strong demand, with over 1,200 houses launched, predominantly five-, six-, or seven-bedroom villas exceeding Dh18 million and reaching as high as Dh45 million. Transactions with the Land Department are underway to document the sales of most of these units.

Looking ahead, market insiders anticipate the unveiling of “sea-front mansions” with private beaches, potentially pushing launch costs beyond Dh50 million. The current price range has been between Dh18 million to Dh45 million, and the introduction of these uber-luxury homes is expected to elevate pricing possibilities.

Amidst global attention on the UAE hosting COP28, real estate agents predict another surge in demand by December 15, particularly in the upper echelons of the Dubai and Abu Dhabi markets. The payment plans for Palm Jebel Ali homes consider handovers starting late 2027, with a 20% down payment and the remaining amount divided into 10% installments throughout the project, culminating in the final 20% due at handover.

The tight construction schedule, coupled with the 20% already in escrow, ensures Palm Jebel Ali’s continued dominance in the top tier of the Dubai property market. As new releases come in, breaking its hold on the luxury segment will prove challenging.

Note: The information is based on a report by Reidin-GCP.