Dubai Islands is stepping into the spotlight as one of Dubai’s most ambitious waterfront destinations, bringing a wave of new opportunities for residents, visitors, and global investors. Backed by Nakheel and aligned with Dubai’s 2040 Urban Master Plan, the multi-island development is rapidly taking shape as a hub for luxury living, cultural experiences, and long-term capital growth.

Dubai Islands

Spanning 17 square kilometres with 20 kilometres of beachfront, Dubai Islands will offer a balanced mix of luxury residences, hospitality, retail, leisure, and cultural districts across five interconnected islands, all minutes from the city and Dubai International Airport. Planned RTA bridge enhancements will further streamline connectivity, reinforcing everyday convenience for residents and visitors.

Dubai Islands H1 2025 performance
According to Betterhomes Research, Dubai’s real estate market delivered its strongest ever half-year in H1 2025, with total transactions across the emirate surpassing AED 262 billion.

Within this momentum, Dubai Islands alone recorded AED 6.1 billion in sales from 1,936 transactions between January and June 2025, positioning the destination among Dubai’s most active and sought-after coastal districts.

Apartments:
1,895 sales totalling AED 5.63 billion.
Average price: AED 2.9 million

Villas also saw strong traction (Dubai Islands, H1 2025):
28 transactions, averaging AED 15 million per villa.
Six-bedroom residences averaged AED 44.4 million.

Price positioning:
Dubai Islands residential average: AED 2,340 per sq ft.
Comparative context: Palm Jumeirah averages AED 3,000+ per sq ft.

Yields and growth:
Coastal communities, including the Dubai Islands, are already outperforming on yields and long-term appreciation. Premium waterfront areas across the emirate achieved 12%–15% annual price growth by June 2025, underscoring Dubai Islands’ potential for above-market returns, especially for early movers.

“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.

Wassim Abdallah

“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 developments & key players in the Dubai Islands
Dubai Islands is anchored by Nakheel as master developer and is building momentum with a growing mix of hospitality-led and residential projects that strengthen its destination appeal. The islands already feature Rixos Dubai Islands Hotel & Residences, bringing branded, service-led living to the waterfront, alongside operational family-focused resorts such as Hotel Riu Dubai and Centara Mirage Beach Resort Dubai, which have helped establish steady leisure footfall. As infrastructure phases progress, new residential neighbourhoods, primarily low- to mid-rise beachfront and waterfront addresses, are set to roll out with elevated community amenities and enhanced promenade experiences. Complementing these homes, planned cultural, retail, and marina precincts will complete a full lifestyle ecosystem of dining, wellness, and community spaces, reinforcing the Dubai Islands’ long-term liveability and investment fundamentals.

Why choose the Dubai Islands?
For end-users, Daily life feels like a private resort, with long beachfronts, pedestrian-friendly promenades, and branded hospitality on your doorstep. Connectivity is practical: close to Deira, Old Dubai, and DXB, with RTA bridges enhancing access to the rest of the city. Homes prioritise light, flow, and indoor-outdoor living, ideal for families, professionals, and second-home buyers who want water, space, and services without sacrificing city convenience.

For investors, the case rests on three forces: genuine waterfront scarcity in a regulated, globally connected market; price efficiency versus mature peers like Palm Jumeirah, allowing room for price discovery; and branded hospitality with curated placemaking that supports resilient occupancy and rental performance. With H1 2025 data showing strong sales volumes and premium price-per-square-foot benchmarks, Dubai Islands presents an attractive entry point for yield and long-term value.

What’s next for the Dubai Islands
With more than 10,700 residential units currently under construction across multiple developers, and more set to be added to the inventory, the pipeline underscores strong, sustained growth. As infrastructure advances, the Dubai Islands will welcome a new wave of flagship residential and lifestyle projects from leading developers, expanding choice for buyers and deepening the destination’s appeal. This marks a prime window for first movers to secure positions in Dubai’s newest, fully connected waterfront address.