Dubai waterfront property rates have doubled.The increase has been more prominent post-pandemic, offering a high return on investment.
14 July 2023, 12:00 AM
31 August 2023, 12:00 AM
Dubai's waterfront property prices have witnessed a substantial increase in the past couple of years, led by Palm Jebel Ali, Jumeirah Islands and Bluewater Islands.
The strong interest from high net-worth individuals from across the globe have resulted in price increase in the emirate's prime residential property markets.
The price rise has been more prominent after the pandemic, offering a high return on investment as rates more than doubled across some prime localities. But will the newly-launched Palm Jebel Ali, which will be twice the size of Palm Jumeirah and add 110km to the emirate's waterfront, help bring down waterfront property prices in Dubai?
Property experts say it will take quite some time before waterfront property prices – which have seen notable increases after the pandemic – begin to stabilise or come down.
According to Property Monitor data, villa price at Palm Jumeirah, considered a benchmark for waterfront properties, has increased 132 per cent from Dh1,803 per square foot (sqft) in 2020 to Dh4,196 in 2023, a meteoric jump in prices and one that has seen many people cash in on their property assets over the last few years. Similarly, apartment prices on the Palm have grown by 119 per cent since 2020.
Laura Adams, residential sales director, Provident Real Estate, said the re-launch of the Palm Jebel Ali has occurred at a very favourable time, and there has been significant interest in the project.
"We anticipate that early investors, like the Palm Jumeirah, will gain the most from the project's value. The majority of the shoreline and demand is still high due to a number of factors, including a high return on investment over the short term and a good chance of appreciation," said Adams.
She stressed that there is such a strong demand for beachfront properties that introducing more supply is unlikely to have an impact on the existing ones.