How Dubai's reclaimed islands are becoming luxury havens

The UAE’s residential coastline is set to expand significantly as land is reclaimed to build islands for thousands of new waterfront homes and keep pace with an insatiable demand for luxury property . In what has become a hallmark of the nation’s rapid growth, marine coastal development has created islands visible from space and looks set to continue for years. Work is under way to build hundreds of homes on Palm Jebel Ali , a man-made island twice the size of the existing Palm Jumeirah . Other island developments are also set to begin construction, significantly expanding the number of luxury waterside homes for sale. Dubai has become well known for this kind of coastal construction, and that is a significant element of the emirate's 2040 Urban Plan, which aims to attract huge numbers of investors and new home owners. Dubai Islands, near Port Rashid, which was once a key Gulf trading post, will comprise five islands spread across 17 square kilometres and 20km of beachfront. The nearby Jumeirah Bay, La Mer and the 771,00-square metre Pearl Jumeirah in the Jumeirah One district are other man-made islands about to become bustling new neighbourhoods. With Dubai’s white-hot residential market showing few signs of cooling, millionaire investors are focusing on waterside developments. “Over the past four years, waterfront projects have appreciated maybe two, or even three, times the value of inland projects,” said Firas Al Msaddi, chief executive of Fam Properties. “Buyers realised this, and this cemented narratives in their minds. Developers said 'if that's the case, we should try our best to go into waterfront projects to create additional coastline, to create newly reclaimed islands'. The success and appreciation witnessed in the Palm Jumeirah is unprecedented if you look at the trend of prices and capital gains.” Mr Al Msaddi cited a Frond F beachfront villa in Palm Jumeirah that sold for Dh4.6 million in 2008, and has since been resold nine times. The last sale was in January 2024, when the villa sold for Dh128 million, earning a capital gain of 2,650 per cent. It illustrates the demand for beachside luxury villas, and why there is a clamour to build more coastline on which to create even more wealth. “This is a completely new era in Dubai, something we have not witnessed before,” said Mr Al Msaddi. “With the infrastructure, regulations and global positioning, Dubai is in a completely different space to 10 years ago, with the luxury segment dominating the coastline. “It's more cemented than ever because the money is in, so all these millionaires and billionaires who have actually invested in Dubai won't be able to sell to an average individual. If they want to exit the market, they will only be able sell to people with equal wealth.” According to research by UAE University, an additional 119 square kilometres of land was reclaimed in the UAE from 2000 to 2021. In Abu Dhabi, 35 square kilometres was reclaimed, while Dubai reclaimed 68 square kilometres – more than 70 per cent of the total land reclaimed in the UAE. Sunrise Capital, a company involved in a high-end project on Pearl Jumeirah, is due to hand over developments before the end of the year. Its chief executive, Yogesh Bulchandani, said unique factors were driving Dubai’s coastal property market towards unprecedented levels. “Until a couple of years ago, the market was not ready to accept these extravagant products. Today the market, consumer force and inflow of people in Dubai all lead to a very special sauce. That special sauce is people willing to accept these products at the price point, and developers also that are willing to offload them,” he said. “Developing a project like this wasn't as difficult as I assumed it might be, definitely not when compared to the Palm Jumeirah, the World or Dubai Islands. The more developments that occur on these islands, the more we learn and the easier it is to build.” The Pearl’s sold-out Nikki Beach development will include apartments ranging from one to four bedrooms, town houses and a Miami-style beach club resort. Originally known as East Bay, as part of the Jumeirah Garden City Project, the island development was launched in 2008. Since then, it has seen plans for high-rise developments scrapped in favour of more low-density buildings to meet the soaring demand for coastal villas. Ten million square metres of dredging and reclamation is reported to been involved in building the Pearl, using 1.6 million tonnes of rock for the final construction. The techniques were similar to those used to create other man-made islands along Dubai’s coastline. Head north from Dubai towards the Northern Emirates, and the pace of change is familiar. In Umm Al Quwain, Siniya Islands promises an elite yacht club and helicopter taxi services with 196 villas on sale from $2.6 million, alongside 550 apartments. Francis Alfred, managing director of Sobha Realty, which is behind Siniya Island, claims the development will “set a new benchmark” in luxury living. The development will be built in the heart of mangroves, seagrass plantations, mudflats and salt marshes of ecological importance. This has put the development under scrutiny to ensure Umm Al Quwain’s delicate ecosystem is protected. To mitigate the disruption, the Ministry of Climate Change and Environment has already installed several artificial reefs off Umm Al Quwain, with the aim of creating an environment that promotes marine biodiversity. Since 2014, more than 4,331 artificial reefs have been installed in the UAE to allay environmental construction damage and boost fish stocks. While Siniya Islands utilise existing land for development, more reclaimed islands have been constructed nearby. In Ras Al Khaimah, the man-made Marjan Island has already pushed up property prices. Interest in the four coral-shaped islands in a man-made archipelago in Al Hamra has soared since the announcement that the UAE’s first casino will open on the island. Wynn Resorts plans to operate the Dh14 billion gaming facility from 2027. To build the islands themselves, a construction technique called vibro-compaction stabilises sand and gravel, to ensure it does not shift with the tide. Huge amounts of sea sand is dredged and deposited along the coastline and the islands are shaped by cutter suction dredgers using satellite imagery. Sand is then deposited into the water from cannons on board hopper suction dredger vessels, building up land mass for development. The World Islands, an archipelago of 260 islands 4km off Jumeirah Beach, required 386 million tonnes of rock to construct. Its development began in 2003 as one of Dubai’s most ambitious projects. More than 20 years later, only a handful of islands have been commercially developed. Ramjee Iyer, managing director of Acube Developments , which has experience in offshore marine construction, said coastal protection is essential to ensure the islands are safeguarded from erosion and other marine issues. “Techniques have evolved significantly since the Palm Jumeirah was built 20 years ago, with a strong focus on sustainable and environmentally-friendly practices,” Mr Iyer said. “Advanced technologies like 3D printing are now used in design and architecture, enhancing precision and efficiency. “Sustainable materials and construction methods are prioritised to minimise environmental impact. Projects today often include extensive environmental assessments to ensure that development is as eco-friendly as possible.” To ensure the longevity and durability of man-made islands, several measures must be in place, Mr Iyer said. “The deterioration of structures can often be attributed to factors such as erosion, climate change, and maintenance challenges,” he said. “Utilising high-quality materials and state-of-the-art construction techniques can significantly enhance the resilience of these structures against environmental wear and tear. “Regular maintenance is also essential. Without consistent upkeep, even the most robustly constructed islands can succumb to deterioration.”

How Dubai's reclaimed islands are becoming luxury havens

Latest island plans reflect continued appetite for upmarket properties