Palm Jumeirah: 6 New Zones Attracting Ultra-High-Net-Worth Interest in 2025

REAL ESTATE1 month ago

Palm Jumeirah: Dubai’s AED 893B real estate market in 2024 (22% YoY growth, 226,000 transactions) offers villas (AED 3M–800M) and apartments (AED 585K–112M) with 6–10% ROI and 5–8% appreciation by 2029. Palm Jumeirah, Nakheel’s iconic 5.72 sq km palm-shaped island, remains Dubai’s premier luxury destination, accounting for 30.6% of Q1 2025 deals above AED 36.7M (USD 10M) and 127 ultra-luxury transactions in 2024.

Its 76 km coastline, private beaches, and proximity to Dubai Marina (10 min) and Dubai International Airport (25 min) attract ultra-high-net-worth individuals (UHNWIs) from Europe (25%), Russia (15%), and China (10%).

Six new zones Billionaires’ Row (Frond G), Six Senses Residences, Ela Residences, W Residences, Atlantis The Royal, and The Palm Tower are driving interest with ultra-luxury villas, penthouses, and branded residences (AED 20M–800M, 2,000–25,000 sqft).

These zones offer bespoke architecture, exclusive amenities, and 30% price surges in 2025, fueled by limited supply and Dubai’s tax-free environment. This guide analyzes these zones, detailing freehold benefits, tax incentives, sustainability features, and investment potential, supported by 2024–2025 data.

1. Billionaires’ Row (Frond G)

Project Details: Located on Frond G, this exclusive zone features custom-built 5–8-bedroom villas (AED 75M–800M, 10,000–25,000 sqft), including Casa Del Sole (sold for AED 302.5M in 2022). Offers private beaches, underground parking, cinema rooms, and Arabian Gulf views. Completed 2022–2024. Average price: AED 7,500–32,000 psf.
Freehold Benefits: 100% freehold ownership, registered via Dubai Land Department (DLD). Enables global resale and inheritance without restrictions.
Tax Incentives: Zero personal income tax on rentals (AED 2M–10M/year), zero capital gains tax on profits (e.g., AED 6M–64M by 2029), and no property tax. 4% DLD fee (AED 3M–32M). Free zone ownership via JAFZA ensures 0% corporate tax.
Sustainability Features: Energy-efficient designs, solar panels, and low-VOC materials. Aligns with Dubai Clean Energy Strategy 2050 and SDG 11.
Investment Potential: 8–10% ROI, with 90% occupancy due to exclusivity and short-term rental demand (18% growth in 2025). AED 8.44B in 2024 ultra-luxury sales. 5–8% appreciation by 2029 (e.g., AED 75M villa to AED 78.75M–81M). Golden Visa eligible (AED 2M+).
Impact: Pinnacle of luxury for UHNWIs. Tax savings (AED 3M–88M) and 24-hour security attract billionaires from Russia and India.

2. Six Senses Residences

Project Details: Nakheel’s branded residences on the Crescent offer 2–5-bedroom apartments and penthouses (AED 20M–50M, 2,000–9,000 sqft) with private pools, wellness spas, and sea views. Features LEED-certified designs and Six Senses concierge services. Completed 2023. Average price: AED 5,556–10,000 psf.
Freehold Benefits: 100% freehold ownership, registered via DLD. Supports global resale and legacy planning.
Tax Incentives: Zero personal income tax on rentals (AED 600K–1.5M/year), zero capital gains tax on profits (e.g., AED 1M–4M by 2029), and no property tax. 4% DLD fee (AED 800K–2M). Free zone ownership ensures 0% corporate tax.
Sustainability Features: Solar panels, water-saving systems, and eco-friendly materials. Aligns with Dubai 2040 Urban Master Plan and SDG 11.
Investment Potential: 7–9% ROI, with 85% occupancy due to wellness-focused amenities and tourism (17M visitors in 2024). 5–8% appreciation by 2029 (e.g., AED 20M apartment to AED 21M–21.6M). Golden Visa eligible.
Impact: Wellness-oriented luxury for HNWIs. Tax savings (AED 800K–5.5M) and proximity to Nakheel Mall (5 min) attract European buyers.

3. Ela Residences

Project Details: Omniyat’s ultra-premium project on the Crescent, launched in 2024 (handover 2028), offers 63 3–5-bedroom apartments and penthouses (AED 43M–100M, 3,000–12,000 sqft). Features Zaha Hadid designs, Dorchester Collection services, and private beach access. Average price: AED 8,333–14,333 psf.
Freehold Benefits: 100% freehold ownership, registered via DLD. Enables global resale and inheritance.
Tax Incentives: Zero personal income tax on rentals (AED 1.3M–3M/year), zero capital gains tax on profits (e.g., AED 2.15M–8M by 2029), and no property tax. 4% DLD fee (AED 1.72M–4M). Free zone ownership ensures 0% corporate tax.
Sustainability Features: Eco-conscious materials, smart home systems, and low-density zoning. Aligns with Dubai Clean Energy Strategy 2050 and SDG 11.
Investment Potential: 8–10% ROI, with 90% pre-sale absorption due to exclusivity. 5–8% appreciation by 2029 (e.g., AED 43M penthouse to AED 45.15M–46.44M). Golden Visa eligible.
Impact: Architectural masterpiece for elite buyers. Tax savings (AED 1.72M–11M) and proximity to Atlantis The Palm (5 min) attract Middle Eastern and Asian UHNWIs.

4. W Residences

Project Details: Developed by Al Sharq Investment and Al Mana Group on the Western Crescent, opened 2022, offers 2–5-bedroom apartments and penthouses (AED 20M–60M, 2,000–10,000 sqft). Features resort-inspired amenities, private pools, and Nakheel Mall access. Average price: AED 6,000–10,000 psf.
Freehold Benefits: 100% freehold ownership, registered via DLD. Supports global resale and legacy planning.
Tax Incentives: Zero personal income tax on rentals (AED 600K–1.8M/year), zero capital gains tax on profits (e.g., AED 1M–4.8M by 2029), and no property tax. 4% DLD fee (AED 800K–2.4M). Free zone ownership ensures 0% corporate tax.
Sustainability Features: Energy-efficient systems and landscaped gardens. Aligns with Dubai 2040 Urban Master Plan and SDG 11.
Investment Potential: 7–9% ROI, with 85% occupancy due to celebrity appeal and tourism. 5–8% appreciation by 2029 (e.g., AED 20M apartment to AED 21M–21.6M). Golden Visa eligible.
Impact: Vibrant luxury for HNWIs. Tax savings (AED 800K–6.6M) and monorail access (5 min to trunk) attract global celebrities and investors.

5. Atlantis The Royal

Project Details: Kerzner International’s 2023 project on the Crescent offers 2–5-bedroom residences and penthouses (AED 25M–112M, 2,500–12,000 sqft), launched with Beyoncé’s performance. Features sky pools, private beaches, and Nobu dining. Average price: AED 9,333–10,000 psf.
Freehold Benefits: 100% freehold ownership, registered via DLD. Enables global resale and inheritance.
Tax Incentives: Zero personal income tax on rentals (AED 750K–3.36M/year), zero capital gains tax on profits (e.g., AED 1.25M–8.96M by 2029), and no property tax. 4% DLD fee (AED 1M–4.48M). Free zone ownership ensures 0% corporate tax.
Sustainability Features: Eco-friendly materials and water-saving systems. Aligns with Dubai Clean Energy Strategy 2050 and SDG 11.
Investment Potential: 8–10% ROI, with 90% occupancy due to global brand prestige and tourism (17M visitors in 2024). 5–8% appreciation by 2029 (e.g., AED 25M residence to AED 26.25M–27M). Golden Visa eligible.
Impact: Iconic luxury for UHNWIs. Tax savings (AED 1M–12.32M) and proximity to Burj Al Arab (10 min) attract American and European buyers.

6. The Palm Tower

Project Details: Nakheel’s 52-floor development, completed 2021, offers studio to 3-bedroom apartments (AED 2.65M–20M, 1,154–3,050 sqft) and St. Regis residences. Features a 240m observation deck, infinity pool, and Nakheel Mall access. Average price: AED 2,297–6,557 psf.
Freehold Benefits: 100% freehold ownership, registered via DLD. Enables global resale and inheritance.
Tax Incentives: Zero personal income tax on rentals (AED 80K–600K/year), zero capital gains tax on profits (e.g., AED 132K–1.6M by 2029), and no property tax. 4% DLD fee (AED 106K–800K). Free zone ownership ensures 0% corporate tax.
Sustainability Features: Energy-efficient lighting and low-VOC materials. Aligns with Dubai 2040 Urban Master Plan and SDG 11.
Investment Potential: 6–8% ROI, with 85% occupancy due to affordability and tourism appeal. 5–8% appreciation by 2029 (e.g., AED 2.65M apartment to AED 2.78M–2.86M). Golden Visa eligible.
Impact: Accessible luxury for HNWIs. Tax savings (AED 106K–2.2M) and monorail connectivity (5 min to mainland) attract young professionals and investors from India and China.

Market Trends and Outlook for 2025

Yields and Appreciation: Palm Jumeirah’s ultra-luxury segment offers 6–10% ROI and 5–8% appreciation, with a 30% price surge in 2025 (AED 2,297–32,000 psf). Q2 2025 saw 143 ultra-luxury sales (80 apartments, 63 villas) worth AED 9.54B, with Palm Jumeirah leading at 28 transactions above AED 36.7M. Short-term rentals grew 18%, with 85–90% occupancy.
Freehold and Tax Environment: Freehold laws since 2002 allow 100% expat ownership, driving 58% foreign investment (India, Russia, UK, China). Zero personal income, capital gains, and property taxes, with a 4% DLD fee, ensure tax efficiency (savings of AED 106K–88M). Free zone entities (JAFZA) offer 0% corporate tax. No fee changes confirmed for 2025.
Infrastructure Impact: Monorail, new bridges (e.g., four planned for 2025), and proximity to Sheikh Zayed Road boost values by 20–30%. Planned expansions (Palm Jebel Ali, 17 fronds) and tourism (17M visitors in 2024, targeting 25M by 2030) drive rentals (AED 500–10,000/night).
Investor Drivers: Limited supply (2,493 homes above AED 36.7M, down 39% in 2024) and Golden Visa eligibility fuel 60% of demand. Branded residences (e.g., Six Senses, Atlantis) and bespoke designs (e.g., Zaha Hadid) command 40–60% premiums. Sustainability (solar panels, eco-materials) attracts ESG investors.
Risks: Oversupply (350,000 units by 2029) and AML compliance costs (AED 5K–20K) pose a 5–10% correction risk in H2 2025. Mitigated by 85–90% absorption, escrow accounts, and DLD regulations.
Regulatory Framework: DLD ensures transparency via digital title deeds. Escrow laws protect off-plan investments (handover 2028 for Ela Residences). Freehold zones allow inheritance with no estate tax; DIFC Wills Service Centre recommended for non-Muslims.

Investment Strategy

Diversification: Invest in Billionaires’ Row (AED 75M–800M, 8–10% ROI) or Ela Residences (AED 43M–100M, 8–10% ROI) for ultra-luxury, Six Senses or W Residences (AED 20M–60M, 7–9% ROI) for branded living, Atlantis The Royal (AED 25M–112M, 8–10% ROI) for prestige, or The Palm Tower (AED 2.65M–20M, 6–8% ROI) for affordability.
Entry Points: Off-plan units (e.g., Ela Residences, 10% down, 50/50 plans) offer flexibility. Completed units (e.g., Atlantis The Royal, W Residences) suit immediate rentals (AED 80K–10M/year).
Tax Optimization: Hold properties personally to avoid 9% corporate tax or use JAFZA entities for 0% corporate tax. Pay 4% DLD fee and recover input VAT (AED 5K–100K/year) via UAE FTA registration. Consult advisors like Luxhabitat Sotheby’s for compliance.
Process: Verify freehold status via DLD portals. Pay 4% DLD fee and secure NOC. Use platforms like Property Finder, dxbproperties.ae, or luxuryproperty.com. Required documents: passport copy, proof of funds, no UAE visa needed. Documents must be translated into Arabic and legalized.

Conclusion

In 2025, Palm Jumeirah’s six new zones Billionaires’ Row, Six Senses Residences, Ela Residences, W Residences, Atlantis The Royal, and The Palm Tower offer 6–10% ROI and 5–8% appreciation, backed by AED 893B in 2024 transactions and AED 8.44B in ultra-luxury sales.

Freehold laws enable global ownership, while tax advantages zero personal income, capital gains, and property taxes, and a 4% DLD fee (saving AED 106K–88M) maximize returns. Sustainability features (solar panels, eco-materials) align with Dubai Clean Energy Strategy 2050 and SDG 11. Despite a 5–10% correction risk from oversupply, 85–90% absorption, escrow protections, and infrastructure (monorail, new bridges) ensure stability.

With record-breaking sales (e.g., AED 365M plot, AED 216M villa) and competitive pricing (AED 2,297–32,000 psf), these zones attract UHNWIs from Europe, Russia, and China. Palm Jumeirah