People have been asking me about Dubai Islands more and more over the last year. Many still remember it as Palm Deira, the palm off Deira that was started in 2004 and then frozen for years. Today Nakheel is building a very different project here: five islands with beaches, hotels and homes. Around 4,670 apartment deals went through here in the last twelve months, all of them off-plan. So let’s go through it: what it costs, what already works on the islands and what is still being built.
In shortDubai Islands (formerly Palm Deira) is a freehold Nakheel project of five reclaimed islands off the Deira coast. An off-plan one-bedroom costs about AED 2.42M and a two-bedroom about AED 3.9M, with an average of about AED 2,880 per sq ft. Prices in the same projects rose 1.8% over the year. All deals over the year were off-plan; the first residential building was handed over in March 2026. There is no metro on the islands; the nearest station, Gold Souq, is 10–15 minutes by car.
Where Dubai Islands is
The islands sit in the Gulf right opposite old Deira, next to Abu Hail and Al Mamzar. For now they are connected to the mainland by bridges on the Deira side. It’s a handy spot: DXB airport is about 15–20 minutes by car, the Gold Souk about 10, and Downtown about 25 minutes without traffic.
A bit of history. The project was launched in 2004 as Palm Deira, a palm bigger than Palm Jumeirah, and work stopped in the 2008 crisis. In 2013 it was renamed Deira Islands, and in 2022 Nakheel released a new master plan and gave it today’s name, Dubai Islands. It’s now five islands, more than 20 km of beaches, parks, a marina and, according to the plan, around 80 hotels.
The master developer is Nakheel, the same company that built Palm Jumeirah. Private developers such as Imtiaz are building here too. It’s freehold, so a foreigner simply buys the apartment outright.
Getting around. There is no metro on the islands. The nearest Green Line station is Gold Souq, 10–15 minutes by car. Only one bus route runs onto the islands, so for now life here is hard without a car or taxis. In June 2025 the RTA signed a AED 786M contract for a new 1,425-metre bridge, four lanes each way, linking the islands directly to Bur Dubai across the mouth of the Creek. It’s part of the big Al Shindagha Corridor upgrade. Once the bridge opens, getting towards Bur Dubai and Sheikh Zayed Road will be noticeably easier.
Dubai Islands prices and rental yields in 2026
I don’t take these numbers from listings. They come from Dubai Land Department (DLD) open data on actual deals, the same data we use in DXB Radar.
| Apartment deals over 12 months | about 4,670, all off-plan |
| Off-plan: 1 / 2 / 3 beds | about AED 2.42M / 3.9M / 5.81M |
| Off-plan: 4 beds | about AED 10.95M |
| Average off-plan price | about AED 2,880 per sq ft |
| Price change over the year, same projects | +1.8% (flat over the last three months) |
| Service charge | about AED 17 per sq ft a year |
Let’s do the maths. A typical one-bedroom here costs about AED 2.42M. At around AED 2,880 per foot that’s roughly 840 sq ft. The service charge is about AED 17 per foot, so once the building is handed over, budget roughly AED 14K a year for upkeep. If you’re buying to rent out, put that into your numbers from day one.
On rental yield I’ll be straight with you: it’s too early to calculate. The first residential building on the islands was only handed over in March 2026, and there are no solid rental statistics yet. As more buildings are handed over, the numbers will appear and we’ll add them to DXB Radar.
Prices are calm. Over the year apartments in the same projects went up 1.8%, and over the last three months prices have held steady.
There are almost no ready apartments on the resale market here. Every deal over the year was off-plan, which means you buy on a payment plan and wait for handover. For an investor that’s a normal approach, as long as you understand the timelines and pick a reliable developer.
Infrastructure
- Beaches: Dubai Islands Beach holds a Blue Flag, the international mark for clean water and a safe beach. There’s a section where you can bring your dog. Al Mamzar Beach Park is about 13 minutes by car.
- Hotels and restaurants: RIU Dubai with 800 rooms, Centara Mirage Beach Resort and Park Regis by Prince, which opened in 2024, are already running, with restaurants and beach clubs.
- Marina: Nakheel Marinas Dubai Islands opened in 2023 and takes yachts up to 47 metres.
- Shopping: Souk Al Marfa, a waterfront market with around 400 shops in its first phase, is on the island. There are still few everyday supermarkets by the buildings, so for groceries and big malls such as Al Ghurair Centre or City Centre Deira people drive to Deira.
- Hospitals: none on the islands yet. The nearest are Canadian Specialist Hospital in Abu Hail and the government-run Dubai Hospital in Al Baraha.
Schools near Dubai Islands
There are no schools on the islands yet, so children are driven to the mainland. The ratings are from the latest inspections by KHDA, Dubai’s schools regulator.
- Al Ittihad Private School Mamzar — US curriculum, “Good”, about 10 minutes by car.
- Deira International School in Dubai Festival City — UK curriculum and IB, “Outstanding”, about 20–25 minutes by car.
If you have school-age kids, plan the school run in advance.
Buildings and projects
Ready: in March 2026 Imtiaz handed over Beach Walk, the first residential building on Dubai Islands, with 80 apartments. Everything else that’s finished on the islands is hotels, the marina and Souk Al Marfa.
Under construction:
- Bay Grove Residences by Nakheel — about 1,150 homes in total, 1 to 4 bedrooms. The construction contract for the first 537 homes has been signed, with handover planned for late 2028.
- Rixos Dubai Islands Hotel & Residences by Nakheel — Rixos-branded apartments and villas. In June 2026 Bay Residences & Villas were about 56% complete and Beach Residences about 33%.
- Bay Villas by Nakheel — villas with handover planned for 2027. In August 2026 construction was about 23% complete.
- Further Beach Walk phases by Imtiaz and dozens of projects by other developers.
There’s a lot under construction. If you want to see how a specific project is really going, check the Construction progress section of DXB Radar. The completion figures there come from the Dubai Land Department, not from the developer.
Pros and cons of Dubai Islands
I’ve read the guides from Driven Properties, bhomes and other agencies, plus reviews of the beach and hotels, and I’ve added what our clients who viewed apartments here tell us. Here’s roughly the picture.
What people like:
- The beaches and sea views, with a clean Blue Flag beach.
- Close to the airport, which is rare for a beach area.
- Old Deira, the Gold Souk and the Creek are right next door.
- A serious master developer in Nakheel, and new buildings with pools and gyms.
What people complain about:
- Hard without a car: no metro and only one bus route.
- No schools or hospitals on the islands yet.
- Few grocery shops near the buildings.
- Heavy construction, so noise and dust.
- Rush-hour traffic on the way into Deira.
My view
I find Dubai Islands genuinely interesting. There aren’t many places in Dubai that give you your own beach and the sea, and at the same time 15–20 minutes to the airport and ten minutes to the old town. On the west side of the city almost everything by the sea is already built up, while here a new beach area is only starting to fill up. Prices rose 1.8% over the year and demand is holding, even though there are hardly any ready buildings yet.
The area suits people buying for several years ahead who are ready to wait for handover. Nakheel plans to hand over Bay Villas in 2027 and the first Bay Grove buildings in late 2028, and Rixos is under construction. As residents move in, shops and services will follow. The new bridge to Bur Dubai will shorten the drive to the centre. And the hotels and beach already bring people here, so there will be demand for short-term rentals too.
Keep in mind that while the area is being built, it’s not very convenient for a family with children; schools and shops will come later. For a purchase several years ahead, though, now is a good moment, while the islands are only starting to fill up.
My team can show you actual deal prices for specific Dubai Islands projects and help you compare developers and handover dates — leave a request.
Frequently asked questions about Dubai Islands
How much does an apartment on Dubai Islands cost?
According to Dubai Land Department deals, an off-plan one-bedroom costs about AED 2.42M, a two-bedroom about AED 3.9M and a three-bedroom about AED 5.81M. The average is about AED 2,880 per sq ft.
Can a foreigner buy property on Dubai Islands?
Yes. It’s freehold, so a foreigner buys the apartment outright. Almost all deals right now are off-plan, on a developer payment plan.
Is there a metro on Dubai Islands?
No. The nearest Green Line station, Gold Souq, is 10–15 minutes by car. Only one bus route serves the islands, so a car makes life easier.
Which schools are near Dubai Islands?
There are no schools on the islands yet. Nearby is Al Ittihad Private School Mamzar, US curriculum, rated “Good” by KHDA. Deira International School in Dubai Festival City, rated “Outstanding”, is about 20–25 minutes by car.
Dubai Islands or Dubai Creek Harbour — which to choose?
Dubai Creek Harbour is further along, with many ready buildings and an established rental market. Dubai Islands is at an earlier stage, but it has its own sea beach and the airport is very close. If you want an apartment that rents out straight away, look at Creek Harbour. If you’re ready to wait for handover for a beach area, look at the islands.
All figures for Dubai areas: DXB Radar. This is not investment advice: for details, consult a broker of 2088 Real Estate.
Sources: Dubai Land Department open data (data.dubai), deals up to 28.09.2026; Wikipedia, project history; Propsearch; bhomes; Driven Properties; Dubai Holding, Bur Dubai bridge; Gulf News, Beach Walk; Gulf News, Bay Grove Residences; Nakheel, Rixos construction; fäm Properties, Bay Villas; KHDA ratings. Figures as of September 2026.
