Dubai developer Nakheel has awarded three construction contracts worth more than Dh5 billion ($1.36 billion) collectively for ultra-luxury villas on the first six fronds of the Palm Jebel Ali project.
The contracts were given to Ginco General Contracting, Shapoorji Pallonji Mideast and United Engineering Construction Company, the company said in a statement on Wednesday.
The scope of work includes the construction of 723 beach collection and coral collection villas across fronds K, L, M, N, O, and P, as well as the development of infrastructure and public spaces in the area.
The contracts include developing 539 five-and six-bedroom beach collection villas and 184 seven-bedroom coral collection villas, with built-up areas ranging from 8,000 to 15,000 square feet. Along with the construction of the waterfront residences, a network of roads, integrated utilities and landscaping is also under way.
The units are scheduled for completion by late 2026, Nakheel said.
The announcement comes after Nakheel awarded a contract worth Dh810 million in August to complete marine works. The main road connecting the man-made island to Sheikh Zayed Road, the city's main motorway, is also under way.
The development has been recording strong buyer interest, with nearly 700 villas sold out soon after launch last year. Each villa sold for between Dh20 million and Dh50 million, Matthew Green, head of research Mena at Global Commercial Real Estate Services, told The National in August.
Palm Jebel Ali represents the "pinnacle of waterfront living", said Khalid Al Malik, chief executive of Dubai Holding Real Estate, the parent group of Nakheel.
"It is set to contribute significantly to the emirate's economic development, attracting investment and tourism for years to come."
The new master plan for the Palm Jebel Ali development was unveiled by Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, in May last year.
When completed, Palm Jebel Ali will be twice as big as Palm Jumeirah and will feature seven islands and 16 fronds, adding more than 90km of beachfront. It is expected to provide 35,000 families with beachside residences, green spaces and other amenities, as well as 80 hotels and resorts.
The project also marks the beginning of a new growth corridor in the Jebel Ali area, underlining the expansion of the emirate, in line with the Dubai 2040 Urban Master Plan and the Dubai Economic Agenda D33, Nakheel said.
The UAE property market has been booming in recent years on the back of government initiatives, such as the golden visa scheme, as well as overall growth in the country's economy.
The luxury and ultra-luxury segments, in particular, have recorded a sharp rise in prices and investor interest over the past two years.
The emirate recorded 948 sales in the luxury property segment, each valued at Dh15 million or more, during the first five months of 2024, a report by property company Betterhomes found. These high-value transactions were concentrated in areas such as Palm Jumeirah, Mohammed bin Rashid City, Dubai Water Canal, Tilal Al Ghaf and Dubai Hills Estate.
Dubai's luxury prime market also hit a record last year as sales of $10 million-plus homes nearly doubled to $7.6 billion, performing better than London and New York, Knight Frank said in a report earlier this year.
Prices of $10 million-plus homes in Dubai also grew at one of the fastest rates globally at 26 per cent last year, as overseas demand for prime residences in the emirate continues unabated, according to Knight Frank.
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What should do investors do now?
What does the S&P 500's new all-time high mean for the average investor?
Should I be euphoric?
No. It's fine to be pleased about hearty returns on your investments. But it's not a good idea to tie your emotions closely to the ups and downs of the stock market. You'll get tired fast. This market moment comes on the heels of last year's nosedive. And it's not the first or last time the stock market will make a dramatic move.
So what happened?
It's more about what happened last year. Many of the concerns that triggered that plunge towards the end of last have largely been quelled. The US and China are slowly moving toward a trade agreement. The Federal Reserve has indicated it likely will not raise rates at all in 2019 after seven recent increases. And those changes, along with some strong earnings reports and broader healthy economic indicators, have fueled some optimism in stock markets.
"The panic in the fourth quarter was based mostly on fears," says Brent Schutte, chief investment strategist for Northwestern Mutual Wealth Management Company. "The fundamentals have mostly held up, while the fears have gone away and the fears were based mostly on emotion."
Should I buy? Should I sell?
Maybe. It depends on what your long-term investment plan is. The best advice is usually the same no matter the day — determine your financial goals, make a plan to reach them and stick to it.
"I would encourage (investors) not to overreact to highs, just as I would encourage them not to overreact to the lows of December," Mr Schutte says.
All the same, there are some situations in which you should consider taking action. If you think you can't live through another low like last year, the time to get out is now. If the balance of assets in your portfolio is out of whack thanks to the rise of the stock market, make adjustments. And if you need your money in the next five to 10 years, it shouldn't be in stocks anyhow. But for most people, it's also a good time to just leave things be.
Resist the urge to abandon the diversification of your portfolio, Mr Schutte cautions. It may be tempting to shed other investments that aren't performing as well, such as some international stocks, but diversification is designed to help steady your performance over time.
Will the rally last?
No one knows for sure. But David Bailin, chief investment officer at Citi Private Bank, expects the US market could move up 5 per cent to 7 per cent more over the next nine to 12 months, provided the Fed doesn't raise rates and earnings growth exceeds current expectations. We are in a late cycle market, a period when US equities have historically done very well, but volatility also rises, he says.
"This phase can last six months to several years, but it's important clients remain invested and not try to prematurely position for a contraction of the market," Mr Bailin says. "Doing so would risk missing out on important portfolio returns."
What vitamins do we know are beneficial for living in the UAE
Vitamin D: Highly relevant in the UAE due to limited sun exposure; supports bone health, immunity and mood.
Vitamin B12: Important for nerve health and energy production, especially for vegetarians, vegans and individuals with absorption issues.
Iron: Useful only when deficiency or anaemia is confirmed; helps reduce fatigue and support immunity.
Omega-3 (EPA/DHA): Supports heart health and reduces inflammation, especially for those who consume little fish.
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