Following the success of The Palm Jumeirah, the newly announced Palm Jebel Ali is set to welcome a number of iconic ultra-luxury hotel and residential developments that will attract more high net worth individuals and global retail and hospitality brands to the emirate.
Real estate industry analysts and players expect this new master development to attract strong interest not only from local developers but also from regional developers as it is expected to offer the same high return on investment (RoI) as other prime projects in Dubai, if not higher.
His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, recently announced the launch of The Palm Jebel Ali, which will be twice the size of The Palm Jumeirah, with beaches stretching 110 kilometers, housing more than 80 hotels and expansive premium waterfront developments.
The Palm Jumeirah places the emirate's real estate among the world's ultra-luxury projects and is home to A-list Bollywood and Hollywood celebrities. It is already home to iconic projects such as Atlantis The Palm, Anantara, Royal Atlantis, Five Hotels, Zabeel Saray, Raffles and many others.
Savills, a global real estate consultancy, said there has been a significant increase in enquiries for beachfront properties in Dubai over the past few years.
The announcement of The Palm Jebel Ali is therefore at a very opportune time and the project will contribute well to the performance of the residential and commercial real estate market in the future," said Swapnil Pillai, Associate Director of Savills Middle East Research.
She added that waterfront developments are considered prime real estate in many cities around the world and are also in very high demand in Dubai.
"They attract a wide user base from investors to end users and this epidemic has somehow further fuelled the demand for waterfront developments. Some of the city's most iconic and in-demand real estate developments are located along the waterfront. Among other factors, investment in these developments is driven by the pursuit of a lifestyle that revolves around nautical activity," said Pillai.
Phil Sheridan, CEO of Berkshire Hathaway HomeServices Gulf Properties, said the Palm Jebel Ali project will strengthen the emirate's position on the global competitive map as one of the most important destinations for investment in tourism and real estate, particularly luxury real estate.
"This type of mega project will attract investment companies from all sectors around the world, and as a result, we will witness an increase in the number of visitors, tourists and people looking to live and invest."
Farhad Azizi, CEO of large private developer Azizi Developments, said The Palm Jebel Ali would provide and attract a new avenue for luxury investment for HNWIs and UHNWIs, on par with, if not exceeding, Dubai's clearly outstanding return on investment.
"The hospitality industry will also benefit greatly from this new master plan as beachfront hotels and resorts are in the highest demand. Tourism is particularly evident here, with Dubai seeing a significant influx of visitors year after year and continuing to be crowned the number one most popular destination in the world," he added.
"As a developer entering the hospitality industry, we are interested in this new prime land," Azizi added.
Dilip Daswani, director of Dubai-based Capitol Real Estate, added that the Palm Jebel Ali project shows that the world's appetite for Dubai is not over, but very much in demand.
"We look forward to seeing more billionaires and millionaires coming here to buy their vacation homes, raising the profile of Dubai as a fantastic place to enjoy life and seeing more personalities rubbing shoulders with you at malls and restaurants," Daswani said.
Imran Farooq, CEO of Samana Developers, regional developers, especially from Dubai, find The Palm Jebel Ali an exciting opportunity that will follow the super success of The Palm Jumeirah as another milestone for Dubai.
"The Palm Jebel Ali brings a new group of buyers to the market ...... The Palm Jebel Ali is located on the same commercial corridor that houses Dubai South and Al Maktoum International Airport. This corridor will be the largest transportation and logistics hub, connecting all three modes of transportation in Dubai - road, sea and air," he added.
He added that developers will be given another option to acquire waterfront projects, supported by the success of the Palm Jumeirah, which has hardly any land available.
