Dubai: Investors who missed the opportunity to book the long-awaited first residential launches on Dubai’s Palm Jebel Ali shouldn’t worry.
There’s plenty more to come – or they can always do so from the secondary market ads featuring Palm Jebel Ali homes. At premiums of 10 to 25% over launch prices. That’s right, less than a week after the Palm Jebel Ali homes went on sale, a vibrant secondary market is building up around this island destination. Some of the biggest real estate portals have received new listings for some of the homes reserved in recent days. And with a solid profit margin.
None of this is surprising, as the Palm Jebel Ali has become the largest single-project launch of the year – indeed, of the decade, according to industry sources. It is twice the size of the Palm Jumeirah and, according to the revised master plan, will become Dubai’s new haven for wealthy investors, with lifestyle offerings to match.
What do secondary market prices look like?
“A 10-25% premium over list prices is what you see on real estate portals,” said a market source. “This is in addition to introductory prices of 18 million dirhams to 25 million dirhams for entry options, and then increases considerably depending on the property’s location on the island.” Through the ads, sellers offer the reservation form they hold on the property, for which they have paid 20% as a deposit. Given the overall value of the homes, these are quite substantial sums paid in advance.
Queued up – and more to come
On the day of the launch, there were late-night queues as the Dubai real estate market and its buyers prepared for this exceptional day.
“There were around 1,500 people waiting for the release of the 400 or so units on the four arms,” said Ranjeet Chavan, founder and CEO of Nautilus Real Estate. “From what we can see in the floor plans, they’re designed to showcase unparalleled views.
“The Palm Jebel Ali price points are much higher than expected. Investors were expecting starting price tags of 10 to 12 million dirhams for the 5-bedroom villas, but they start from 18 million dirhams. Signature Coral villas were expected to be around the mid-20s for 20 million dirhams, but they start from 36 million dirhams. Tip villas start from 70 million dirhams, and that was the plan. In the coming weeks, more houses will be put up for sale on the Second Palm, including apartment buildings. The main brokerage firms are all “inundated” with customers wishing to register for the next series.
“The biggest craze in the Dubai real estate market right now is the PJA,” said one real estate agent. “That’s the way it is, and it’s going to be for a while. Other luxury residential launches will have to take into account the demand for Palm Jebel Ali.”
Dubai real estate moves up a gear
That’s good enough for the Dubai real estate market as a whole, which is gearing up for a strong year-end in 2023.
“Dubai’s real estate market isn’t slowing down anytime soon,” said Ainsley Duncombe, founder of Off-Market Listing (OML) Dubai. These presale launches reflect unprecedented market demand. We have received inquiries from seven of our HNWI customers for villas on the Palm, two locally based customers and five international customers. Ainsley Duncombe of OML
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