Dubai developer Nakheel has awarded contracts worth more than Dh3.5 billion ($950 million) for the construction of 544 villas at Palm Jebel Ali as work on Dubai's waterfront development progresses.
Ginco General Contracting is set to build 354 villas across Fronds A to D, while United Engineering Construction will construct 190 on Fronds E and F, Nakheel said on Monday.
Building is scheduled to start in the coming weeks, with the end of 2028 the completion target.
“The awarding of these contracts signals tangible progress in the delivery of Palm Jebel Ali, with construction now progressing across multiple fronds,” said Khalid Al Malik, chief executive of Dubai Holding Real Estate.
“Palm Jebel Ali represents one of the most significant expansions of Dubai’s urban coastline … and will play a key role in supporting the emirate’s long-term growth.”
Nakheel, which also developed The Palm Jumeirah, is part of Dubai Holding Real Estate along with other developers including Meraas and Dubai Properties.
The new master plan for the Palm Jebel Ali development was unveiled by Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, in 2023.
Twice as big as Palm Jumeirah
When completed, Palm Jebel Ali will be twice as big as Palm Jumeirah and will feature seven islands and 16 fronds, adding more than 90km of beachfront. It is expected to provide 35,000 families with beachside residences, green spaces and other amenities, as well as 80 hotels and resorts.
The latest contracts align with the goals of the Dubai 2040 Urban Master Plan and the Dubai Economic Agenda D33, Nakheel said.
Dubai aims to double the size of its economy to Dh32 trillion over the next decade and establish the emirate among the top three global cities as part of its D33 strategy, launched in 2023.
Officials have also unveiled a blueprint to make Dubai the world’s best city to live in as part of Dubai 2040 Urban Master Plan, with a target to reach a 7.8 million population. as well as double the size of green and recreational areas, and increase in length of public beaches by more than 400 per cent by 2040.
Strong demand for luxury homes
The latest announcement comes as demand for luxury homes remained strong last year, supported by a flow of global wealthy to the emirate.
The total sale of homes valued at more than $10 million reached 500 last year, up 15 per cent year-on-year in terms of volume and about 28 per cent in value to $9.05 billion, according to the latest report from Knight Frank.
Of the total sales, 68 properties were valued at more than $25 million, with numbers within that segment up nearly 48 per cent annually.
Developers expect the UAE property market to bounce back strongly and “continue booming” once the Iran crisis is over.
“I am expecting the property market to continue booming,” Egyptian billionaire Naguib Sawiris, the chairman of Ora Developers, told The National in Abu Dhabi this month. “Once this crisis [Iran conflict] is off the news, it will return to the previous boom … now, it’s a matter of pause.”
The UAE's strong stance on happiness, security, discipline, recognition and tolerance will attract more people to live in the country and support the property market's growth, he added.
