With first villa handovers approaching, more than AED 13 billion in contracts awarded and major private developers now on board, Palm Jebel Ali is entering the most consequential phase of its journey to becoming Dubai’s next waterfront address.
November 13, 2026 | Tripti Mehta | UAE | Real Estate | 7 Min Read
Image Courtesy: REM Times
Few addresses in Dubai carry the weight of a Palm. Palm Jumeirah turned an engineering landmark into one of the world’s most recognisable residential brands, and its larger sibling is now preparing to write a story of its own. Palm Jebel Ali has moved firmly into delivery. Villa construction is advancing across all 12 residential fronds, more than 1,200 villas are moving through build and finishing stages, and the first homes are scheduled for handover from late 2026. For the industry, the significance reaches well beyond a single project. Palm Jebel Ali is anchoring a new coastal growth corridor on Dubai’s southern edge, close to Expo City Dubai and Al Maktoum International Airport, at a time when prime waterfront supply in established locations is increasingly scarce. The conversation has shifted from what Palm Jebel Ali will be to who will help shape it.
Prince His Highness Sheikh Mohammed bin Rashid Al Maktoum approved the current masterplan in May 2023. It positions Palm Jebel Ali as a mixed-use island destination rather than a residential enclave. The island is twice the size of Palm Jumeirah. It is planned to house approximately 35,000 families and feature more than 80 hotels and resorts, and up to 30% of its energy will come from renewables, in line with the Dubai 2040 Urban Master Plan and the Dubai Economic Agenda D33.
On the ground, the island is visibly taking shape. Nakheel has awarded more than AED 13 billion in construction and infrastructure contracts to date. On Fronds K to P, 728 villas have entered the internal and external finishing stage. That work followed AED 5 billion in contracts awarded in 2024 to Ginco General Contracting, Shapoorji Pallonji Mideast and UNEC. A second wave came in April 2026, when Nakheel awarded more than AED 3.5 billion to Ginco and UNEC for 544 villas across Fronds A to F, with completion targeted for Q4 2028.
Infrastructure is moving in step. DBB Contracting holds three contracts worth over AED 750 million. They cover utility mains, frond connections, and primary and secondary roads across the Spine District and Fronds A to G, with completion scheduled for Q4 2026. Utilities are being built out alongside. DEWA is delivering two 132/11 kV substations with 400 MVA of capacity, and a Tabreed and Dubai Holding joint venture is building a district cooling network, with first services due in 2027. Dubai Holding Real Estate has confirmed that the island will come to life in phases, with infrastructure, access, public realm and amenities sequenced around each residential release.
The most significant shift for the wider industry is structural. Until mid-2025, every release on Palm Jebel Ali came from Nakheel. In July 2025, Dubai Holding completed its first strategic land sale on the island to a third-party developer: Select Group, together with its joint venture partner Emirates Strategic Investments Company. Select Group will create upscale residential and hospitality offerings, and design and planning are under way.
In February 2026, Aldar and Dubai Holding expanded their joint venture with two Dubai land plots carrying a combined gross development value of more than AED 38 billion. One of the plots is on Palm Jebel Ali and is earmarked for an ultra-luxury waterfront development with branded and non-branded residences. Aldar is responsible for the full development cycle. Dubai Holding has described these deals as part of a strategy to unlock value from its land bank by working with leading partners. Further partnerships are expected across hospitality, branded residences, wellness, leisure and lifestyle.
Demand has kept pace with construction. Knight Frank data shows Palm Jebel Ali recorded 22 home sales above US$10 million in Q4 2025, second only to Palm Jumeirah, and accounted for 10.4% of the value of all such transactions in the quarter. DLD figures compiled by DXB Interact reportedly put the island’s median villa price at AED 21.3 million, against AED 33 million on Palm Jumeirah, which makes it the more accessible entry point into ultra-prime waterfront living. Knight Frank has described the island as a destination to watch, noting that 2025 sales signal strong demand from the wealthiest buyers for prime waterfront property.
Nakheel has also widened the product mix. Palm Central Private Residences launched in October 2025 on the island’s central spine and introduced apartments and penthouses. Its June 2026 release of 222 homes added townhouses, with one-bedroom units starting from AED 2.7 million. In August 2026, Nakheel released 44 beachfront villas on Frond F and positioned them as one of the final opportunities to buy a new villa on the fronds.
| Palm Jumeirah | Palm Jebel Ali | |
|---|---|---|
| Status | Established and operational | First handovers from late 2026 |
| Scale | The original benchmark | Twice the size |
| Product mix | Villas, apartments, hotels | Villas, apartments, townhouses; 80+ hotels planned |
| Developer model | Nakheel and third-party developers | Nakheel, Select Group, Aldar |
Palm Jebel Ali is less a single project than the anchor of a new coastal corridor. Dubai Holding Real Estate has highlighted its connection to Expo City Dubai and Al Maktoum International Airport, the same southern growth axis now reshaping Dubai South. As handovers begin, the island will shift from a purely off-plan market to a living community, and the opportunity widens for every part of the industry:
Palm Jebel Ali’s progress is now measured in fronds, contracts and handover dates. As the first residents arrive, the island’s identity will be shaped as much by its partners as by its master developer. For developers, contractors, operators and advisors, the window to position early is open, and it will narrow with every phase that delivers. The second Palm is becoming Dubai’s next defining waterfront address.
