Dubai Islands: The City’s Next Big Waterfront Investment Story
Dubai Islands is fast emerging as one of the city’s most compelling new waterfront destinations. Once a quiet development zone, it has transformed into a high-growth coastal community that is attracting strong interest from both end-users and investors.
According to betterhomes research, Dubai Islands recorded AED 6.1 billion in sales in the first half of 2025, positioning it as one of Dubai’s fastest-rising waterfront markets. Backed by master developer Nakheel and aligned with the Dubai 2040 Urban Master Plan, the project is redefining luxury coastal living by blending resort-style homes, lifestyle districts, and seamless city connectivity.
A waterfront destination with scale
Spanning 17 square kilometres and offering 20 kilometres of beachfront, Dubai Islands is made up of five interconnected islands designed for residential living, hospitality, culture, and leisure.
Its strategic location places residents just minutes from Deira, Old Dubai, and Dubai International Airport, while upcoming RTA bridge links will further enhance accessibility. This balance of island living with central connectivity is a key part of the project’s appeal.
Strong market momentum
Dubai’s residential market closed H1 2025 with AED 262 billion in total transactions, its strongest half-year on record. Within that growth, Dubai Islands stood out:
- 1,936 total transactions worth AED 6.1 billion
- Apartments: 1,895 sales worth AED 5.63 billion
- Average price: AED 2.9 million
- Villas: 28 transactions
- Average price: AED 15 million
- Six-bedroom villas reaching AED 44.4 million
- Average price: AED 2,340 per sq. ft.
- Compared to AED 3,000+ per sq. ft. on Palm Jumeirah
With waterfront communities recording 12–15% annual price growth by mid-2025, Dubai Islands is well positioned to outperform in both rental yields and capital appreciation.
Why buyers are paying attention
“Dubai Islands combines a premier waterfront setting with practical city access,” says Wassim Abdallah, Director of Development Sales and Consultancy at betterhomes. “It attracts both end-users seeking resort-style living and investors focused on yield and long-term capital growth.”
Early villa releases have also seen an element of price discovery, reflecting rising confidence in the area as its lifestyle offering and infrastructure continue to take shape.
What’s taking shape
Nakheel is delivering a fully integrated destination with a mix of residential, retail, hospitality, and cultural spaces. Key developments already open include:
- Rixos Dubai Islands Hotel & Residences
- Hotel Riu Dubai and Centara Mirage Beach Resort
Upcoming phases will introduce:
- Low- to mid-rise residential communities
- Marina precincts
- Cultural and retail hubs
- Beachfront promenades, dining, and wellness spaces
Together, these will form a walkable waterfront lifestyle destination that blends resort living with everyday convenience.
A new chapter in Dubai’s coastal story
With its scale, connectivity, and lifestyle positioning, Dubai Islands is no longer a future concept. It is an active, high-performing market that reflects Dubai’s next phase of waterfront living. For buyers seeking value relative to established coastal locations, and for investors targeting long-term growth, Dubai Islands is fast becoming one of the city’s most exciting opportunities.
