The developer plans to build branded luxury homes and an ultra-luxury boutique hotel in space between the One & Only and W Hotel resorts.
Dubai-based developer Nakheel announced it had sold one of the few remaining beachfront plots on the West Crescent of Palm Jumeirah to UAE real estate company Select Group and its joint venture partner Emirates Strategic Investments Company.
The companies are planning to build branded luxury homes and a boutique hotel on the 17,919 square meter plot, master developer Nakheel said in a statement on Wednesday.
The company group already owns an adjacent plot of land spanning 47,474 square meters. The new purchase makes the joint venture's total beachfront development area on Palm Jumeirah come to over 65,410 square meters.
'The demand for tranquil beachfront locations has increased exponentially and our aim is to target the ultra-luxury segment,' Rahail Aslam, founder and group chief executive of Select Group, said.
Dubai's real estate market demonstrates signs of recovery due to the emirate's economic support measures and government initiatives that include visas for expatriate retirees, remote workers and the expansion of the 10-year golden visa scheme.
The Dubai Land Department said on Monday, that 25,455 real estate transactions worth USD 25 billion had taken place in Dubai from January to April 2021. This is 51 percent more in terms of quantity and 72 percent higher in terms of value compared to the same period in 2020.
8,749 new investors came to the emirate's market between January and April 2021. They accounted for 65 percent of the total number of real estate investors for the period and registered an increase of 54 percent compared to the same period last year.
Palm Jumeirah made the list of top five communities for villa sales in April. As for apartments, Dubai Marina, Burj Khalifa, Palm Jumeirah, Business Bay and Al Thanyah Fifth had the highest number of transactions in April.
The plot acquired by the company group is located between the One & Only and W Hotel Palm Jumeirah resorts. It is one of the last few remaining beachfront spaces in the development.
The companies' representatives said, the hotel operator and architects of the project would be announced within the following few weeks.
Select Group plans to begin construction on the project before the end of the year and fully complete it in three years.
'We are delighted that all parties’ collaboration has concluded with the sale of one of the last remaining plots at our flagship master development, Palm Jumeirah,' a Nakheel spokesperson said.
Other projects implemented by Select Group include Jumeirah Living Marina Gate in Dubai Marina and 15 Northside in Business Bay.