Dubai’s New Islands: An Opportunity for Coastal Real Estate Investment

Dubai’s real estate market is witnessing a surge in off plan offerings, with island projects taking the lead. “Damac Islands,” currently under construction in Dubailand, is located only 15–20 minutes away from areas such as Sports City and Dubai Investments Park. Damac has priced the starting rates for four bedroom townhouses of 2,208 sq. ft. from AED 2.25 million, while the starting rate for six bedroom homes of 4,440 sq. ft. is AED 6.3 million.

Variety in Pricing on Dubai Islands

This launch brings along a range of island lifestyle prices in Dubai, starting from AED 2 million at Damac Islands to AED 19 million for homes on Palm Jebel Ali. These off plan coastal developments provide new avenues for investors who could previously consider ultra high priced properties only on either Palm Jumeirah or Jumeirah Bay.

Other developers are also entering the market. Nakheel is developing “Dubai Islands,” while Majid Al Futtaim’s Tilal Al Ghaf features two “island” hubs with record breaking prices. Sobha recently launched villas on “Siniya Island” in Umm Al Quwain, with prices starting at AED 10.5 million and apartments from AED 1.18 million.

Abu Dhabi joins the race for luxury island developments

Meanwhile, in Abu Dhabi there are new island projects that have come up. Aldar has announced plans for two new islands near Yas and Saadiyat, while Al Fahid Island offers ultra luxury housing. Meanwhile, Saadiyat Island continues to attract investors with ongoing developments.

A Complete Revamping of UAE’s Real Estate Market

The UAE’s real estate is going through a full fledged “island” renaissance. According to Hussain Sajwani, Founder and Chairman of Damac Properties, the projects were a manifestation of their dream to create spaces where retreat and connection are an integral part of the user experience. Bollywood stars Amitabh Bachchan and Ranveer Singh, the boxer Amir Khan and Lebanese actress Nadine Njeim were the high profile guests invited to promote the Damac Islands.

The Success of Lagoon-Themed Developments

An earlier lagoon themed project by Damac, launched in 2021 became a huge success and is serving as a model for the Damac Islands. Coastal living remains one of the strongest demands in Dubai, showing no signs of slowdown.

Conclusion

Artificial island-centered new booms in real estate are experienced in Dubai. Developers like Damac, Nakheel and Aldar offer villas, apartments and townhouses with luxurious amenities. These new islands, with stunning views and recreational facilities, attract both domestic and international investors. However, the prices of Dubai properties in these new islands are very high due to high demand and luxury facilities.

Other emirates, such as Abu Dhabi and Ras Al Khaimah, are also building artificial islands to meet the demand for a coastline and high-end living. This indicates that the UAE is becoming more attractive for luxury real estate investment and the growth is likely to continue.

Source: https://www.propertynews.ae