Palm Jebel Ali is a megaproject in construction that began off the coast of Dubai in 2002. Construction of the man-made archipelago halted amid the global financial crisis in 2008 and has since lain dormant. However, with a 300% rise in value for many of Dubai’s prime waterfront properties in 2022, developer Nakheel has announced the project will be revisited.
Plans are underway to complete the masterplan for Palm Jebel Ali, which will be rebranded and renamed. Nakheel has also restarted the Palm Deira project, formerly known as both Deira Islands and Dubai Islands. Together with the completed Palm Jumeirah, these three palm-shaped archipelagos will offer hundreds of prime beachfront real estate properties.
Ryan Mahoney of Dubai, UAE, has been in the real estate business for many years and has been heavily involved with various real estate projects in Dubai and across the UAE. You can see some of the most expensive properties sold to date in Palm Jumeirah in the infographic attachment.
Dubai’s Housing Boom
Data from August 2022 showed that Dubai property sales had reached a 12-year high, with AED24.3 billion (US$6.6 billion) recorded over 9,720 transactions within the month. Property prices, rents and demand for luxury prime real estate are soaring. While the finalized plans for Palm Jebel Ali have not yet been released, it is expected that there will be approximately 6,000 new apartments and around 1,700 beachfront villas once the project is complete. With demand far outweighing supply and prices spiking, new properties in this area look likely to be highly desirable.
You can learn more about island life on Palm Jumeirah in the PDF attachment to this post.
Property Investment in Dubai
Dubai is an attractive option for investors in real estate for multiple reasons. The purchase, lease and ownership of property in the emirate is currently tax free, and there are no personal taxes to pay either. At present, businesses also do not pay tax in Dubai, although from June 2023 this is set to change.
Businesses with an annual income of $100,000 or more will be required to pay a 9% tax from the first of June. Buyers are required to pay a registration fee of 4% of the property value upon purchase. However, when investing in properties under construction, many developers will pay some or all of this fee themselves. The embedded short video introduces another advantage for property investment in Dubai: the Golden Visa.