Rental rates on the world’s first man-made island development, the Palm Jumeirah, off the coast of Dubai, are soaring. The new properties on the island are proving to be even more popular than expected and more people are willing to pay to live there. According to several property and estate agents in Dubai, the high demand and low availability is causing prices to double since the beginning of the year.
Some agents noted that rents for the most popular apartments are rising as much as 5,000 dirhams, or US $1,360, every two weeks due to the demand for space. Annual rents for one bedroom units have now reached 170,000 dirhams, or $46,285. And that’s just to rent, not to buy or own.
The Palm Jumierah is the first of three sets of Palm islands that are being constructed off Dubai. This first development consists of a trunk, palm fronds and a surrounding island breakwater. The trunk and fronds hold most of the individual housing and apartments, while many of the 30 hotels set to open are located on the outer island. The Atlantis is one of the new hotels and has just opened for business on the outer edge of the island.
Another hotel, which is located on the trunk, is the Trump Dubai. This hotel and condo tower is set for completion in 2009 and will be 62 floors tall, rising from the center of the trunk. When complete, the Palm Jumeirah will be a spectacular place for residents, visitors and tourists. For those who have a place on the island, it is already a great investment.
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