Living in Dubai Islands

History

Nakheel launched this project in 2004 as Palm Deira, a third palm island off the Deira coast. Reclamation started in 2005, and about a quarter of the area had been reclaimed by April 2008, when the financial crisis stopped work. In 2013 it was scaled down and renamed Deira Islands. A bridge to the mainland opened in 2016, and two beach hotels followed: Hotel Riu Dubai in December 2020 and Centara Mirage Beach Resort in October 2021.

Nakheel released a new master plan in 2022 and renamed the project Dubai Islands. The plan adds about 40 km of coastline and 21 km of beaches, with around 80 hotels.

What it’s like to live here

Today it is mostly a building site with hotels, beaches and a handful of finished residential buildings. One broker’s analysis of Land Department data counts about 5,260 completed homes and 14,390 in the pipeline (Q3 2026). Handovers run from late 2026 to 2031, so expect construction around you for years.

The islands sit just off old Deira. That means a short drive to the Gold Souk, Deira’s markets and cheaper restaurants, and to the waterfront Souk Al Marfa and Deira Night Souk on the island side of the bridge.

Who it suits

Buyers who want a beach or sea-view home for less than the Palm. Bayut’s asking price here was AED 2,448 per sq ft in August 2026, against AED 3,529 for Palm Jumeirah apartments in H1 2026. It suits holiday-home owners and patient investors. It does not suit anyone who needs a finished community, schools on the doorstep or proven rental income now.

Getting around

You will need a car. The islands connect to Deira by bridge, and Bayut puts Dubai International Airport about 15 minutes away and Downtown and DIFC about 20 minutes. In 2025 the RTA awarded contracts for new bridges linking Dubai Islands with Bur Dubai. There is no Metro on the islands; the nearest station is Gold Souq on the Green Line, about 2.5 km from the middle of the islands in a straight line.

Schools, healthcare and shopping

There are no schools on the islands yet. Bayut lists schools and nurseries in Deira about 10 to 15 minutes away, including The Elite English School and Amna Bint Wahab School. Dubai Hospital and Kuwait Hospital are about 12 minutes’ drive. For shopping there is Souk Al Marfa, a waterfront market, plus Deira’s malls and supermarkets. The large Deira Mall has been planned since 2014 but is not finished.

Off-plan here now

Nakheel is the master developer, but most towers are by other developers, from large names to small newcomers. Starting prices below are those listed by the developers or portals in October 2026 unless dated:

• Nakheel, Bay Grove Residences phase 4: apartments from about AED 2m, handover Q2 2029. Phases 1 to 3 sold out.
• Nakheel, Bay Estate: waterfront homes launched on 5 October 2026 from AED 5m, handover Q4 2029 to Q1 2031.
• Nakheel, Bay Villas: sold out at launch in July 2024 with handover due Q2 2027, but the main AED 2.6bn building contract was only awarded in August 2025 and construction was 2.61% complete in October 2025.
• Ellington, The Meriva Collection: apartments launched February 2026 from AED 2.7m, handover Q2 2030 to Q4 2031 by building.
• BEYOND, Hado: three 22-storey towers launched December 2025 from AED 2.3m, handover Q2 to Q3 2029.
• Samana, Ocean Pearl: apartments from about AED 2.5m on a 1%-a-month plan, handover Q4 2026.

What to watch: handovers cluster in 2028 to 2030, so many homes will reach the rental market together. Some buildings’ asking prices are already falling: Bayut shows Beach Walk Grand 2 down 7.58% and Omoria Hotel Residences down 6.29% over 12 months to August 2026. Bay Villas had 205 resale listings for a sold-out project, a sign of buyers trying to sell before completion.

Things to check before you rent or buy

• Judge each building by its own developer’s record. One small developer’s delay says nothing about another’s, and vice versa.
• Rental evidence is thin. Analyses of Land Department data put gross yields at about 2.2% to 4.0% from a small sample of rental contracts, and Bayut’s area guide quotes up to 3.21% (October 2026). Treat 6% to 7% marketing claims with care.
• Service charges are projected at about AED 16 to 20 per sq ft a year, but most buildings have no approved budget yet.
• Traffic through Deira at peak times, until the new bridges open.
• Resale before handover needs the developer’s consent, usually after 30% to 40% of the price is paid, and the buyer pays a fresh 4% Land Department fee.