Dubai Islands is emerging as a key player in the city’s expanding coastal real estate market, reporting over Dhs6.1 billion in property sales in the first half of 2025, according to data from Betterhomes Research.
The mixed-use waterfront development, backed by master developer Nakheel and aligned with Dubai’s 2040 Urban Master Plan, is gaining traction among residents, investors, and second-home buyers seeking resort-style living close to the city.
Strong H1 2025 performance
Between January and June 2025, Dubai Islands registered 1,936 property transactions, marking it as one of the most active coastal destinations in the emirate. Apartment sales accounted for 1,895 transactions worth Dhs5.63 billion, with an average unit price of Dhs2.9 million. Villas also saw solid interest, with 28 units sold at an average of Dhs15 million each. Larger six-bedroom properties fetched as high as Dhs44.4 million.
The average price per square foot across Dubai Islands reached Dhs2,340, placing it below more established areas like Palm Jumeirah, where prices exceed Dhs3,000 per square foot. This positioning has drawn attention from buyers looking for premium waterfront living at a relatively accessible entry point.
Yield potential and market appeal
Coastal communities across Dubai, including the Dubai Islands, have shown strong year-on-year price growth, averaging between 12% and 15% as of June 2025. Industry experts say the area’s combination of waterfront access, branded hospitality projects, and future infrastructure enhancements make it attractive for both lifestyle buyers and long-term investors.
“Dubai Islands combines a premier waterfront setting with practical city access and a pipeline of branded hospitality and lifestyle assets,” said Wassim Abdallah, Director of Development Sales and Consultancy at Betterhomes.
“That together is drawing both end-users who want a resort-style daily life and investors who prioritise yield resilience and capital growth,” he added.
Ongoing development and infrastructure
Dubai Islands spans 17 square kilometres with 20 kilometres of beachfront and is composed of five interconnected islands located minutes from Dubai International Airport and central city districts. Planned enhancements by the Roads and Transport Authority (RTA) are expected to improve connectivity, further supporting residential and tourism activity.
The area currently hosts operational resorts including Rixos Dubai Islands Hotel & Residences, Hotel Riu Dubai, and Centara Mirage Beach Resort Dubai. More low- to mid-rise residential communities are under development, featuring enhanced public spaces, promenades, and family-oriented amenities.
According to Nakheel, over 10,700 residential units are now under construction, with additional supply expected as more developers enter the area. The upcoming residential, cultural, and retail zones aim to create a self-sustained destination with broad appeal for both end-users and investors.
Location advantage and future outlook
Dubai Islands’ proximity to Deira, Old Dubai, and DXB Airport enhances its appeal for those seeking a balance between resort-style living and urban accessibility. The area is also benefiting from growing demand for waterfront homes, limited supply of new coastal land, and the value proposition it offers compared to older, more established districts.
With rising transaction volumes, competitive pricing, and a strong development pipeline, Dubai Islands is positioning itself as one of the city’s fastest-growing waterfront destinations.
tanvir@dubainewsweek.com
