Palm Jebel Ali vs Palm Jumeirah: All you need to know, broken down in 9 segments!

Introduction:

To invest in the Palm Jebel Ali or Palm Jumeirah? This is a question that’s gonna pop up a lot nowadays, especially now that the Palm Jebel Ali has been launched! So here’s a Palm Jebel Ali vs Palm Jumeirah for you!

The Palm Jumeirah(PJ) was the first of the Palm island projects launched in Dubai and currently takes the throne in the Dubai Residential property market for Luxury, Beachfront homes. It is one of the top crowd pullers and manages to hold its price whether it’s Sales or Rentals, over other properties in a similar price segment.

Launched roughly 15 years ago, there are still some projects that have been launched on the Palm Jumeirah just recently and interest is still high! No wonder just last week, news broke of Dubai’s most expensive Penthouse being sold! The property is in an upcoming project called Como Residences, which is at the heart of Palm Jumeirah. This 5-bedroom Penthouse measures almost 22,000 sqft of living space and was sold for a massive 136 Million US Dollars or 500 Million AED! It ranks as the Third Most expensive Penthouse to be sold in the world!

However, when it comes to investing in real estate and the possible growth potential, Palm Jebel Ali(PJA) may be the better option. Here, we’ll compare the Palm Jebel Ali vs Palm Jumeirah and explain why Palm Jebel Ali is a great investment opportunity!

1. Location: Palm Jebel Ali vs Palm Jumeirah

Palm Jumeirah is located close to Dubai Marina, while the Palm Jebel Ali location is near the New Dubai Airport(Dubai World Central). While Palm Jumeirah has better access to the city(for now), Palm Jebel Ali is closer to the new airport and other major transportation hubs. It is close to JAFZA which is one of the largest Freezones in the world.

Also, it is the Feature Destination of Dubai Government’s Southern Urban Center so it will probably get better support infrastructure and connectivity. Lastly, the PJA is closer to Abu Dhabi, which is the capital of the UAE and has major landmarks like the Yas Marina circuit which hosts the F1 Abu Dhabi GrandPrix and the Louvre.

2. Size: Palm Jebel Ali vs Palm Jumeirah

In the quest for achieving excellence, Dubai has shown the world on countless occasions its pedigree to successfully launch and complete Mega projects. For our Palm Jebel Ali vs Palm Jumeirah comparison, the Palm Jebel Ali Nakheel wins as it is twice the size of Palm Jumeirah, making it a better investment opportunity for those who are looking for future growth. The bigger the project in Dubai, more the investing excitement!

Palm Jebel Ali will have the Beach Villas(8 designs), 5-6 bedroom beachfront villas ranging from 7,300 sqft to 8,500 sqft of living space. And the Coral villas(8 designs) which are 7 bedroom beachfront villas around 12,000 sqft of living space. Premium villa plots ranging from 14,000 to 20,000 sqft are also available on each of the Fronds, near the tip.

The Palm Jumeirah has the Canal cove non-beachfront villas, the Garden homes(6 designs) with 3-5 bedroom beachfront villas which range from 5,000 to 6,000 sqft of Living space and the Signature villas(5 designs), 5-7 bedroom beachfront villas around 7,000 sqft of living space. Custom villa plots were only available on limited Fronds(G,H,I,J & N)

3. Price: Palm Jebel Ali vs Palm Jumeirah

Coming to the most important aspect of the Palm Jebel Ali vs Palm Jumeirah comparison, The Palm Jebel Ali price beats Palm Jumeirah by a long way for a buyer! Per the current market rates, the average price of a Beachfront villa in the Palm Jumeirah is roughly AED 5321 per square feet or USD 1,450 per square feet, whereas the price of Palm Jebel Ali is AED 2,598 per square feet or USD 708 per square feet!

To give you a better perspective, a beachfront villa in the Palm Jumeirah costs USD 9.5 Million approximately and a similar property on the Palm Jebel Ali costs USD 5 Million approximately.

The Palm Jebel Ali is currently sold at half the price of Palm Jumeirah! This makes Palm Jebel Ali a great investment opportunity for those looking to make a capital gain.

4. Rental Income

This is one aspect that cannot be compared outright since the Palm Jebel Ali isn’t ready yet, but for the sake of our Palm Jebel Ali vs Palm Jumeirah comparison, let’s just go ahead and do it anyway. The potential is tremendous with PJA.

The average PJ rents are currently around AED 2,000,000 per year, some going up to AED 3-4 Million annually. This Return on Investment is a lot higher for those who bought the property at lower prices and the rents have picked up over time.

Although the PJA villas will be bigger in size and brand new as compared to the PJA, even if we assume a conservative average rental of AED 1,500,000 per year in the first few years, the Palm Jebel Ali’s ROI will be more than 8% NET which beats a lot of top cities! Once more of the support infrastructure, attractions and Hotels come up, the rents are bound to increase further.

Also, once Palm Jebel Ali is ready, majority of the tenants living in the Palm Jumeirah will most likely jump ship, simply because traditionally Dubai Tenants have shown an affinity towards similar Brand new properties! Demand will be higher for the PJA than the PJ.

5. Premium’ness’

I would like to touch upon the exclusivity and privacy part in this section of whether you should go for the Palm Jebel Ali or Palm Jumeirah villas. As is evident in the above image, the distance between two Fronds has almost doubled. It means your next-frond-neighbors will be farther away giving you more Privacy.

Also, the distance between the frond and the crescent has increased, now the crescent is where all the fancy Hotels and Resorts will be coming up, so this bigger gap again offers added privacy while you are lazing away on your private beach, which will indeed be more ‘private’!

Now I know that we are doing a Palm Jebel Ali vs Palm Jumeirah comparison and I really don’t want to confuse you with all the gaps this, gaps that, but in simpler terms, your Sea views will be much better and your sun tanning by the beach will be private.

Lastly, the PJA offering consists of three floors in all the villas which wasn’t available in Palm Jumeirah, which were mostly 2 floors, except for a few designs. In fact, the premium plot in the PJA allows one to build their own villa designs by purchasing the plots and have a Basement+Ground+1^st floor+2^nd floor configuration if required!

6. Connectivity: Palm Jebel Ali vs Palm Jumeirah

If you are looking to start living in a property right now, the Palm Jumeirah beats the PJA simply because the former is an established community. Most of the amenities are available within this mega master community itself. There’s Dubai Marina close by too.

But since we are comparing Palm Jebel Ali vs Palm Jumeirah, the most important aspect that needs to be mentioned here is the access to Palm Jumeirah. Since the PJ has only one access road, it does see a lot of slow traffic. But with the Palm Jebel Ali, they have actually planned to have 3 access roads to it! Traffic won’t be an issue. Plus it will be connected to the E11 which is one of the most important arteries of Dubai.

The upcoming DWC Al Maktoum International Airport, which will become the World’s largest Airport upon completion, is hardly a 20-minute drive from the Palm Jebel Ali. JAFZA, the world’s largest Free trade zone is just 15 minutes away from the Palm Jebel Ali.

For our comparison of Palm Jebel Ali vs Palm Jumeirah, a crucial factor to bear in mind is that right now, there are no Amenities or villas built on the PJA as it is in launch phase, but a Mega project of this shape and scale will see many upcoming (probably World record creating) developments like a malls, schools, entertainment zones etc. being built within the community and maybe a Business district in proximity. Considering its future potential, the Palm Jebel Ali location is enticing!

7.  Investment potential: Palm Jebel Ali vs Palm Jumeirah

The Palm Jebel Ali is an Investment Paradise that will suit those investors who are in for the long game. Property market cycles may surely go up and down, but if you time your exit well, there’s tremendous possibility of making Big money in the Dubai Real Estate!

Especially with the Palm Jebel Ali which offers a huge potential for Capital gains! This is mainly because the Palm Jebel Ali currently, is being offered at almost half the rate of the Palm Jumeirah.

Did you know that the Palm Jumeirah’s initial buyers, bought the properties for roughly AED 2.6 Million(USD 707,866) are now in a position to sell their properties for a Massive gain, because the current prices for a similar property is roughly AED 35,000,000(USD 9.5 Million)!! That’s almost 1242% price JUMP! Currently, the Palm Jumeirah rate is approximately AED 5,000(USD 1,361) per square feet.¹

The Palm Jebel Ali villa price starts from AED 18.7 Million(USD 5 Million approx.), for a property that’s roughly 2,000 sqft bigger in size as compared to the Palm Jumeirah! That’s almost half the current market price of the Palm Jumeirah! Currently, the Palm Jebel Ali rate is approximately AED 2,600 (USD 708) per square feet.

Palm Jebel Ali Case Study:

Let’s assume that you buy a slightly high numbered 5 Bedroom Beach-villa in the PJA(towards the tip of the frond, more premium) costing AED 20,000,000 or USD 5.4 Million. The smallest size is 7,316 sqft which is a Blue Horizon style villa. This boils down to a Purchase rate of AED 2,733(USD 744) per square feet.

You get the handover in approximately 3.5 years, then in the next 2-3 years, there are functional amenities, restaurants, tourist attractions, hotels, a Mall built close by and PJA becomes the talk of the town, with possibly new World Records under its belt. Not factoring any upward or downward movement, just going by today’s prices, even if it reaches the current Selling rate of the Palm Jumeirah, the same villa will be available for you to sell at roughly AED 35 Million(USD 9.5 Million).

Now, this is the exact reason the initial launch phase of the Palm Jebel Ali villas were Sold out on the launch dates itself! Buyers and agents were seen camping in queue at the Sales center a night prior to Launch dates!

However, there is a limited number of villas still available from the latest launch and availability keeps changing depending on bookings. You can get in touch with us by filling up the form below for latest availability/Latest Launches and we’ll go get the villa of your liking.

8. Property markets at launch

Back when the Palm Jumeirah was launched by Nakheel, not many were aware of properties in Dubai at the same level as many know about Dubai and its properties today. Today, more people are aware of the Dubai Real Estate market and its endless possibilities when it comes to investing and earning good returns. Those times were totally different, but still it saw a very good response. Today, the Real Estate Market is even better regulated and pro-active measures are taken by the Dubai Government to protect investor interests.

Dubai Government’s Real Estate Regulatory Agency(RERA) mandates Developers to maintain separate escrow accounts for each project, to have certain minimum capital even before announcing a project, certain project-stage needs to be completed for more amounts to be collected and developers need to collect funds under the name of the respective Escrow account which will be named same as the project name. The properties are pre registered under the Buyer’s name with the Dubai Land Department at the time of property booking itself, property flipping has been curbed with minimum 40% payment requirement for property resale.

More importantly, the UAE Golden Visa has changed the game in Dubai! It allows a person to have a 10 years Residence visa of UAE, with 0 number of days to be spent inside the UAE each year. You can come whenever you wish, but don’t have an obligation to come and spend a minimum number of days here, which is standard with these kind of Golden visa schemes through Property investments. This option wasn’t available during the launch of Palm Jumeirah, but is available now!

In short, the Dubai property market is much more attractive, popular, regulated and safe for an investor to invest into and therefore the Palm Jebel Ali sales will be much more quicker than it was for the Palm Jumeirah.

9. Variety of options to choose from and Pay plan

There’s a dearth of options with the PJA. 16 villa designs with further option to choose from 2 internal color schemes for each villa! You can possibly choose your own villa number and orientation during Launch booking.With the Palm Jumeirah, you’ll have to see what’s available in the market for sale and then go with the best available option.

Most importantly, you get a Zero interest Payment plan with the Palm Jebel Ali, whereas the Palm Jumeirah villa purchase will have to be paid in full or a mortgage will have to be arranged. Do keep in mind that the norm is a maximum of 50% mortgage approved for Non Residents.

Also, a key factor to note is that buying a Property in PJ or any Resale property, will require you to come down to Dubai for the sale proceedings and spend a minimum of 20-40 days for the whole transfer to be completed. Else, you’ll have to issue a Power of Attorney to someone trustworthy for completing the sale on your behalf.

But with the Palm Jebel Ali(as my daughter says)it’s Easy Peasy, literally everything can be done over the phone and emails. Right from villa selection to booking, to getting your property pre-registered under your name with the Dubai Land Department. Just make sure that you DO NOT transfer any money to any agents account. Just get in touch with us and we’ll set you up for a Direct purchase with the developer.

Conclusion

In conclusion, Palm Jebel Ali is a great investment opportunity for persons like non-residents, international investors, and capital gain seekers who are not looking to buy property to move in immediately. This is also apt for those persons who want to invest in a high value safe asset that will give a steady rental income. Some individuals also prefer to furnish and upgrade their properties, give it out on Short term rentals and also use the property themselves whenever they visit Dubai. Check out our services to find out more.

Whether it is a perfect Ultra luxury beach home or a high value investment asset you are looking for, in my opinion the Palm Jebel Ali, is the Mother of all Real Estate Projects!

1. Current market prices from PropertyFinder. ae ↩︎

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