Palm Jumeirah and Palm Jebel Ali have dominated Dubai’s luxury villa sales market since January 2021, making them key indicators of the city’s overall luxury villa market performance, according to a report by Reidin, which said the takeover reflects the islands’ ability to cater to the high-end segment of Dubai’s real estate market.
Since January 2021, luxury villas and Palm Jumeirah have accounted for more than three-quarters of all villa sales. Many villas have exceeded AED 10 million, with deals reaching AED 600 million. This wide spread in prices reflects the diversity of villas available on Palm Jumeirah.
According to the report, recent months have seen a decline in the overall volume of deals, and there has been a noticeable drop in sales since the launch of the Palm Jebel Ali project, indicating that interest has partially shifted to the new project. Signature and Garden Homes villas accounted for around 77.44% of total villa sales on Palm Jumeirah.
The report says: The launch of the Palm Jebel Ali project had a significant impact on Palm Jumeirah sales, as Palm Jumeirah witnessed a decline in sales during the first months of 2024. This decline is attributed to the launch of the Palm Jebel Ali project and its acquisition of a portion of buyers’ interest.
As the number of transactions decreases, price variances increase, resulting in an inaccurate increase in average selling prices, as this average is driven by individual transactions with very high values.
Palm Jebel Ali performed strongly in sales after its launch in 2023, which impacted Palm Jumeirah sales in the following months. It also has been notable for its strong sales of villas valued at over AED 20 million, capturing a significant portion of this market after its launch.
Villa prices in Palm Jebel Ali have seen significant variation, with average prices rising thanks to high-value individual deals. Palm Jebel Ali has accounted for more than 80% of villa sales exceeding AED 20 million since the project’s launch, compared to Palm Jumeirah (18.8%), demonstrating the new project’s appeal to luxury real estate investors.
Luxury villas on Palm Jumeirah and Palm Jebel Ali accounted for around 15.7% of total villa sales in Dubai that exceeded AED 10 million between January 2021 and July 2024, rising to 21.8% for villas that exceeded AED 20 million during the same period.