• btc = $66 932.00 - 185.35 (-0.28 %)

  • eth = $3 103.59 -2.95 (-0.10 %)

  • ton = $6.35 -0.16 (-2.43 %)

  • btc = $66 932.00 - 185.35 (-0.28 %)

  • eth = $3 103.59 -2.95 (-0.10 %)

  • ton = $6.35 -0.16 (-2.43 %)

2 Jun, 2023
2 min time to read

Dubai's ambitious Palm Jebel Ali project is making a comeback after being put on hold for 14 years due to the global credit crisis in 2008.

Palm Jebel Ali's revived master plan will include an impressive set of 80 hotels and resorts, extending the emirate's coastline by 110 kilometers (68,351 miles). The project is designed to accommodate up to 35,000 families and is expected to include luxury villas and apartments.

Notably, about a third of the public facilities will be powered by renewable energy, demonstrating Dubai's commitment to sustainability.

The relaunch comes amid a noticeable upturn in Dubai's real estate market. The emirate has seen an inflow of new buyers, effectively ending a seven-year decline and leading to an increase in real estate prices and rents.

State-owned developer Nakheel PJSC originally introduced the Palm Jebel Ali Fronds and The Palm Jebel Ali Water Homes projects back in 2003. The ambitious project, located about 50 kilometers from downtown Dubai, consisted of 17 palm fronds with marinas, a theme park, waterfront villas and even houses on stilts that formed a poem of Dubai ruler Sheikh Mohammed bin Rashid Al Maktoum.

A few years later, however, the project was abandoned, leaving investors in a state of uncertainty. While some investors chose to exchange their purchases for alternative Nakheel properties, others were asked to reimburse the amounts collected by the developer before work on the project was halted in 2009.

A group of 30 owners has now appealed to a Dubai court in an attempt to overturn the decision, which formally cancelled the project and ruled that the developer must return only the amount collected from the original buyers.

Cancelled real estate projects often lead to complex legal disputes, and this case serves as a stark reminder for buyers amidst one of the world's largest housing booms.

Demand for luxury properties priced at $10 million or more has surged in Dubai, propelling the city to rival global centers such as London and New York. In the first quarter alone, Dubai witnessed the sale of 88 such homes, surpassing other global markets, even though the overall value of properties purchased experienced a slight decline of 4% to $7.2 billion, according to a report from real estate company Knight Frank.