Indian Buyers Flock to Dubai's Palm Islands, Eager to Purchase Luxury Homes at Prices 10 Times Higher Than the Original Under Revived Project
A large number of Indian buyers are eager to purchase luxury homes in Palm Jebel Ali, the largest but relatively undeveloped island in Dubai. The villa project was started two decades ago but halted. Nakheel, the state-owned developer, is now reviving the Palm Jebel Ali project to capitalize on the revamped Dubai real estate market, which had been in a slump for almost seven years. The selling price has now soared to 10 times the initial price.
According to a report in Bloomberg, investors and brokers were spotted outside the sales center of Nakheel PJSC, where five- to seven-bedroom villas are being sold on the yet-undeveloped Palm Jebel Ali. Homes start at 18.7 million dirhams ($5.1 million), which is an estimated Rs 42.21 crore; the cheapest plots of land are selling for about 40 million dirhams, which is an estimated Rs 90.30 crore.
The Bloomberg report also points out that the luxury real estate market in Dubai has been revived in a big way, featuring prominently in global rankings. According to real estate consultancy Knight Frank, transactions of homes valued at $10 million or above have increased significantly.
“The Palm Jebel Ali designs are exceptional,” the report quoted Tamer Bazzari, founder of Dubai-based investment firm Genero Capital LLC, who bought a 7,000 square foot property for 19 million dirhams (Rs 42.89 crore approx) and is planning to buy a second villa. “The location and square foot value is much better than other properties. We think it will be a very lucrative investment.”
The report also stated that buyers will have to pay 20 percent of the villa’s value upfront and a further 40 percent during construction. The remaining amount is to be paid when the properties are complete in 2027.
Indian celebrities such as billionaire Mukesh Ambani and Shah Rukh Khan are among those who have already bought luxury villas in the most famous of the palm-shaped islands, Palm Jumeirah. The report stresses that the majority of buyers trying to purchase expensive houses in Palm Jebel Ali are Indians and Russians.
