The manufactured archipelago of Palm Jumeirah is the epitome of luxury and remains one of the main attractions of the UAE. Its construction was completed in 2006, and, since then, the number of people wishing to buy property in Palm Jumeirah has remained the same. Let’s take a look at what makes this community unique and why you might choose a property for sale in Palm Jumeirah in 2023 in this area.
Palm Jumeirah as a real estate investment in Dubai
The island was constructed by specialists from around the world, whose task was not only to expand the coastline of the UAE but also to preserve the environment in the region. After the creation of the archipelago, the first apartments for sale in Dubai were sold out within a few days.
The island attracts not only investors but also tourists. Every year, hundreds of thousands of people flock here to see life on the millionaire archipelago from the inside. There are several reasons why investing in real estate in Palm Jumeirah is recommended.
- Demand. Not all visitors prefer to stay in hotels. Apartments and villas on the island are popular among renters, allowing you to profit throughout the year.
- Exclusivity and liquidity. Owning an apartment in Dubai in a popular area is prestigious. Such a housing stock is always in demand and, if desired, it can be easily resold.
- Value capitalisation. The housing stock in Dubai rises in price every year. This fact is confirmed by prices that have almost doubled since 2020 for several objects.
- Limited. The area of the island is limited. Therefore, unplanned projects in Dubai in this community will end sooner or later. Then, there will be only secondary housing offered at higher prices.
As already mentioned, Palm Jumeirah real estate is known to be a profitable investment. Countless Emiratis and foreigners are looking for accommodation in Dubai, but most lean towards villas and apartments on this island. Owners of local properties will never have problems finding buyers or tenants. They can earn high capital gains or passive rental income at any moment.
Developed infrastructure
One of the main reasons Palm Jumeirah is in demand is the developed infrastructure of the area. Due to the favourable location of the artificial island, residents have access to several of Dubai’s business centres nearby. The exquisite place is surrounded by many first-class hotels and offices, not to mention elite educational institutions.
Palm Jumeirah is also known for its entertainment venues, the most visited of which is the vast adventure park. There are many fine restaurants, clubs and bars here. Burj Al Arab, located close to the area, is the main local attraction.
Low prices for luxury real estate
Palm Jumeirah is known for its attractive property prices. Entrepreneurs worldwide are looking to invest in local residential properties due to high rental returns and rapid capital appreciation.
Even though the villas and apartments in Palm Jumeirah are relatively cheap, they offer their owners every possible comfort. It isn’t easy to find a property on the island that does not have 24-hour security, a concierge, a swimming pool, a fitness room, a garden, etc.
Scenic view
Local villas offer beautiful views of the Persian Gulf and many beaches. And apartments in high-rise residential complexes delight with the endless expanses of the Arabian Sea on the one hand and lively Dubai on the other. Whatever type of property the buyer chooses, they will have the opportunity to enjoy the picturesque picture from his windows.
Return on investment in real estate in Dubai on the Palm Jumeirah
Most of the objects on the island belong to the premium class and their cost can hardly be attributed to the budget. The most affordable property prices for sale off the plan in Dubai and the highest price threshold for villas. However, investing in the housing stock of the archipelago is potentially profitable:
- The cost of housing is capitalised annually, while the demand for exclusive housing grows along with sales prices.
- The annual rate of return for villas for sale in Dubai is as high as 5.5%. The average return on investment in apartments is 3.7%.
The final profitability ratio depends on the specific object, area, and degree of comfort.
Professional assistance from a real estate agency in Dubai
Specialists of the licensed real estate agency AX CAPITAL will help you find a housing stock in any of the locations in Dubai. You can see the sales offers on the Palm Jumeirah in real time on the site. For a free consultation on the selection and purchase of a foreign real estate in the UAE, contact the agency staff in any convenient way.
