The idea to build sandy islands in the coastal waters of the Persian Gulf appeared in Dubai back in the 1990s. The idea was to increase the length of beaches and embankments several times and get dozens of kilometers of waterfront - the most valuable coastline. The work started almost a quarter of a century ago, in the early noughties. Nakheel, a state-owned development company, was involved in the implementation of the projects.
The Emiratis were by no means the first to expand their territories at the expense of the sea. The tiny principality of Monaco has long been reclaiming precious areas from the water, but the scale is not comparable to Dubai. We can also recall the Dutch polders, territories obtained by draining low-lying swampy sea coasts.
The first archipelago of artificial islands in the Emirate of Palm Jumeirah was completed back in 2006, and this is one of the most ambitious engineering projects of the century. A small island, The Bluewaters Island, next to the Dubai Marina area, has also been fully completed and built up.
The other four major projects, representing entire constellations of islands, were slightly less fortunate. The UAE economy suffered greatly due to the global financial crisis of 2008-2009, and as a result, many initiatives had to be frozen and left until better times. "Better times" were in no hurry to come due to the fall in oil prices in 2015 and the subsequent five-year cooling in the housing market.
Since the pandemic period, the global environment has turned in Dubai's favor once again. The real estate market has been booming for four years thanks to foreign investors, sales are breaking records, href="//www.homesoverseas.ru/news/Ceny_na_nedvizhimost_v_Dubae_vyrosli_v_marte_na_259_v_godovom_ischislenii " target="_blank">apartment prices have almost reached pre-crisis levels, while villa prices have far exceeded them. Thus, ambitions get enough fuel again, and projects are revived in their original or modified form.
So, what is the current situation with Dubai's artificial islands? At what stage are the facilities, and what about the housing market?
Palm Jumeirah(The Palm Jumeirah)
The archipelago in the form of a palm tree consists of a trunk, 16 leaves and an open ring with a length of 11 km, acting as a breakwater. Palm Jumeirah is connected to the mainland by a bridge, and can be reached by car or by train via a monorail.
The project was fully completed almost 20 years ago. About 10,000 people live on an area of 5.6 square kilometers.
The main part of the island has already been built up, but the construction of expensive residences continues on the outer ring.
Palm Jumeirah is considered an elite area of Dubai. The location is in demand among foreign and local millionaires and billionaires.
What kind of real estate is represented?
"Premium and luxury segment facilities with prices starting from $10,000 per square meter are mainly represented on the island," notes Sofia Purgina, Head of Russian Customer Relations at NF GROUP Middle East.
- Apartments. They are mostly located on the trunk and on the outer ring. The cost starts from $540,000-810,000 for small apartments and goes up to $ 13.5 million or more for penthouses.
- Villas. They are built mainly along the water. Their cost ranges from 4 to 50 million dollars or more.
- Hotel-style residences. For example, Atlantis The Royal Residences.
"Some of the most notable residential projects on Palm Jumeirah are: Atlantis The Royal, Six Senses Residences, One at Palm Jumeirah," says Elena Timchenko, Managing Partner of Royal Home Real Estate.
New projects are currently being built on the island, which are certainly in high demand. Six Senses The Palm, Serenia Living, as well as the world's first hotel and residences with a private beach under the management of the Dorchester Collection. We are also seeing a high level of customer interest in completed iconic properties such as Atlantis The Royal and One at Palm Jumeirah (managed by the Dorchester Collection)," adds Sofia Purgina. Due to extremely high demand and lack of supply, luxury real estate in Dubai has recently risen in price faster than the market, however, there is still potential for further price increases, especially for unique properties.The offer for Palm Jumeirah is limited, and there are almost no vacant building sites left, but a new palm tree is coming to the rescue, focused on the elite and premium segment of Palm Jebel Ali.
Palm Jebel Ali (The Palm Jebel Ali)
The Palm Jebel Ali project was announced by Nakheel in 2002 as the second largest palm island, twice the size of Palm Jumeirah. In 2009, construction was put on hold due to the global financial crisis, although a significant part of the bulk works had already been completed. In 2023, Nakheel announced a relaunch and introduced a new island concept.
Today Palm Jebel Ali is one of the most anticipated and interesting projects in Dubai! There will be premium and luxury segment villas, elite townhouses, hotel complexes and apartment hotels, wellness and sports centers. The MOON complex with a giant replica of the Moon with a diameter of 274 meters, an arena for 10,000 people and the world's first six-star boutique hotel will be especially impressive.
Four "branches" of the island will occupy The Coral Collection and The Beach Collection residences: three-storey villas with panoramic sea views, a private pool and access to the beach.What are the real estate prices?
The average sale price in February-March 2025 was $4.97 million for a six-bedroom villa with a price per square meter of $7,054, says Maria Kharlamova, Head of Exclusive Sales at Metropolitan Group.Advantages of Palm Jebel Ali:
1. Location and transport accessibility.The island is a short drive from Al Maktoum International Airport and Expo City business district. Nearby is the Sheikh Zayed Highway, which allows you to quickly get to the central part of the city or to Abu Dhabi.
«When planning the internal distribution network, the developer took into account the experience of previous years. Each branch will receive a separate check-in. This will relieve the central highway at the base of the palm tree and simplify movement around the island, explains Maria Kharlamova.
2. The luxurious beaches are 90 km long.
The distance between the branches is twice as large as Palm Jumeirah, which ensures free water circulation, the expert adds.
3. Infrastructure and landscaping.
4. Smart Home and Smart City systems.
Disadvantages of Palm Jebel Ali:
1. The current stage of construction.The first stage of villas and residences is planned to be commissioned in 2027-2028. The construction of the entire territory can take up to 8-10 years.
2. The infrastructure is also still under construction and will be developed in the coming years.
Investment attractiveness
"Palm Jebel Ali promises good returns to the investor thanks to a new start and government support," says Elena Timchenko from Royal Home Real Estate. "The location is suitable for investments for any period of time. It will be possible to profitably resell real estate on the island even before the construction is completed," says Maria Kharlamova.
By the way, buying a residence will give you the right to apply for a 10-year golden UAE visa for the whole family and household staff with the possibility of unlimited extension.
Dubai Islands
Is there a palm tree with a more affordable property value? Yes, there is such a project, and initially it was really conceived in the form of a palm tree, 8 times, for a minute, larger than the Palm Jumeirah. Today, the concept is radically different, but no less interesting and promising.
The Dubai Islands was previously called The Palm Deira and was supposed to become the largest palm island in Dubai. In 2008, construction had to be frozen. In 2013, it was decided to reduce the area of the archipelago and abandon the original shape of the palm tree. In 2022, the company announced a complete rebranding of the project. It received a new name, concept and building plan.
What is Dubai Islands like today?
The archipelago unites fiveislands.
Central Island.Residential development will be concentrated here, several resort areas, hotels, equipped beaches, malls and restaurants, parks, schools, kindergartens will appear (some of this infrastructure is already in operation). The Souk Al Marfa shopping center, which is to become the largest in the world, is under construction. Experienced international developers have been involved.
Golf Island. An international-class golf club with two playing fields is planned on it. A developer from the USA is engaged in the development of this island.
Marina. The island will become a base for lovers of sea sports with berths and its own yacht club.
Sports island.It will combine an extensive infrastructure for sports activities.
The island of luxury villas.The smallest of the islands will be occupied by elite residences.
The first projects on Dubai Islands went on sale in the spring of 2024. Two resort hotels have already been opened: Riu Dubai and Centara Mirage Beach Resort by Nakheel master developer. Apartments and villas in Rixos Dubai Islands Hotel & Residences on the first line of the sea are popular with investors. Apartment complexes, residences and premium coastal villas are also being built on the island.
What are the real estate prices?
"Dubai Islands is positioned in the business and premium segment, although luxury properties are also on sale," says Elena Timchenko, an expert at Royal Home Real Estate. "The average transaction value at the beginning of 2025 is $383,000. The price per square meter is $5,800, Maria Kharlamova from Metropolitan Group cites data.
So far, housing prices are quite affordable (especially compared to Palm Jebel Ali), which makes the location accessible to a wider range of investors.
Advantages of Dubai Islands:
1. Location and transport accessibility.The archipelago is located in the north of the city near the historical districts and the airport, which makes it especially attractive for tourists and business travelers. "The location is perfect, for example, for investors who want to receive passive income from short-term rentals," says Maria Kharlamova.
The project provides for a well-developed road infrastructure. The central island of Dubai Islands is connected to the Deira area and neighboring islands by several bridges. There are plans to build a new 8-lane bridge that will connect the island with the Bur Dubai area.
2. 20 km of equipped beaches.
3. View of the water from many apartments&thanks to the limitation of the number of floors adopted by the master developer - no more than 12 floors.
4. An abundance of greenery and a well-developed infrastructure in the future.It will be comfortable not only to relax, but also to live with your family.
5. Support of the city authorities.The project is included in the Dubai 2040 master plan.
Disadvantages of Dubai Islands
1. Residential and infrastructure projects are still under construction.
Investment attractiveness
"There are all prerequisites for a stable price increase in this location. The expected return on real estate is 5-6%, Maria Kharlamova believes.
The Bluewaters Island
Like the Palm Jumeirah, it is a fully completed project, although construction began much later, in 2013. The developer Meraas Holding aimed to finish the work by Expo 2020.
Bluewaters Island is located opposite the elite Dubai Marina area and is considered a prestigious location. The small island has many hotels, residential buildings, sports facilities, shops, as well as magnificent sandy beaches and green areas. The main symbol of the island is the world's tallest Ferris wheel, Ain Dubai (Dubai Eye).
What are the real estate prices?
The cost of apartments and villas is comparable to Palm Jumeirah. The cost of finished apartments starts from $ 880,000.
The World
What projects have been implemented in The World archipelago?
- The most developed and well-known "Heart of Europe" (The Heart of Europe) developer Kleindienst Group. It consists of six islands on the "European mainland" with luxury hotels and resort properties.
- In addition, we managed to launch several "point-of-sale" projects: a beach complex on the island of "Lebanon" and the five-star Anantara World Islands Resort in the area of "Antarctica".
"Information about developers' plans to resume development of other islands occasionally appears in the media, but there is no talk of large-scale transformations yet," says Maria Kharlamova.
What are the prospects of The World?
"The World is interesting for residential and hotel projects in an ultra-luxury concept. The development of mass tourism here is hindered by the lack of land connections to the mainland of Dubai. The archipelago can only be reached by air or water. Another disadvantage is the high costs of operation and provision of resources, which negatively affects liquidity, Kharlamova argues. "It is much more difficult to sell a niche object in the archipelago than a relevant property on the Dubai mainland or other artificial islands," the expert concludes.
The Universe
The Universe Archipelago is another large-scale project by Nakheel developer. The idea was to build a chain of islands in the form of astronomical objects of the Solar system. The concept was introduced in early 2008 in the wake of the success of The World. A year later, work was suspended, while it was not possible to restart The Universe, unlike other ambitious projects.
There is no information about plans to resume work today, and the developer is focused on the development of Palm Jebel Ali and The Dubai Islands.
Opportunities and risks of buying real estate on Dubai's bulk islands
The development of man-made islands provides huge opportunities for investors, but at the same time, risks must also be taken into account. As the history of Dubai shows, the success of some projects is indisputable, while the path of others to implementation is tortuous and difficult. In addition, there may be delayed action surprises.
1. The risk of precipitation, soil erosion and flooding.
"These concerns are rather hypothetical," says Maria Kharlamova. Thus, the artificial Palm Jumeirah island has been operating for many years without any emergency situations. The only nuance that had to be fixed during the construction process was the stagnation of water between the branches of the palm tree. Buyers of real estate on the new bulk islands are not in danger of such a problem. The distance between the branches of Palm Jebel Ali has been increased, and Dubai Islands does not have narrow water passages at all.
2. High maintenance costs, especially for front-line residences.
Island specifics can mean additional service fees for owners: protection of the coastline, maintenance of beaches and public areas. "However, this is rather not a minus, but a fair payment for the safe operation of the territory," Maria Kharlamova notes.
3. Limited infrastructure: many projects take time to fully develop.
4. The early stage of project implementation in the case of Palm Jebel Ali and Dubai Islands.
When buying real estate at the construction stage, there is a risk of postponing the deadlines for putting the facility into operation. However, most likely, this will not be a problem for investors, since the construction of the islands is entrusted to experienced developers with a high level of expertise.
"Despite the fact that in projects such as The Palm Jebel Ali, construction was previously suspended after the sale of facilities, now we do not see any special risks of buying real estate on bulk islands.Investors transfer funds to escrow accounts of developers, after which projects are actively implemented, Sofia Purgina emphasizes.
5. Dependence on tourism: the demand for real estate is highly dependent on the flow of tourists.
To sum up, buying real estate in Dubai remains a profitable investment, including on the bulk islands.
The already inhabited islands (Palm Jumeirah and Bluewaters Island) offer reliable and liquid assets, although the prices here are quite high, and the choice of options is no longer so extensive.
"From the perspective of perspective, the Palm Jebel Ali and Dubai Islands archipelagos are of the greatest interest," Maria Kharlamova is sure. These are ambitious projects with a fresh concept, thoughtful layout, a variety of residential and commercial facilities, and a strong resort component.
According to Palm Jebel Ali, the offer is still limited to luxury properties. Dubai Islands offers more affordable facilities. The potential for property value growth is equally high in both locations. As well as the attractiveness for tourists and residents of Dubai.
"Each project has its own unique features, so the choice should be based on budget, goals (investment or accommodation) and the level of risk that you are willing to accept," summarizes Elena Timchenko.
Thank you for your help in preparing the material:
Maria Kharlamova, Head of Exclusive Sales at Metropolitan Group
Elena Timchenko, Managing Partner Royal Home Real Estate
Sofia Purgina, Head of Russian Customer Relations NF GROUP Middle East
