Dubai Islands area guide
Nakheel's five-island waterfront destination off the coast of Deira, with beaches, resorts and new villa launches.
Dubai Islands is Nakheel's master development of five islands off the coast of Deira, close to Dubai International Airport. It's planned as a waterfront destination with beaches, hotels, marinas and residential communities, including Nakheel's Bay Villas and the new Bay Estates on Island E.
| Dubai Islands at a glance | |
|---|---|
| Emirate | Dubai |
| Average price | Dubai Land Department-based estimates for Q3 2026 range from around AED 2,700 to above AED 3,400 per sq ft, reflecting a young market |
| Typical rental yield | Early-stage rental market with limited history; I provide current rental comparables for each property |
| Property types | Apartments, townhouses, villas and villa plots |
| Best for | Early-stage waterfront growth |
| Ownership | Freehold for all nationalities |
Figures are market averages and change over time. Individual properties vary widely by building, view and size.
Living in Dubai Islands
The first hotels, beaches and residential communities have opened or are under way, with more amenities planned over the coming years. Deira and Dubai International Airport are around 15 to 20 minutes away, and Downtown Dubai around 25 minutes.
Pros
- Nakheel master plan with long beachfront
- Close to Dubai International Airport and Deira
- New villa and townhouse launches
- Strong price growth recently, according to Dubai Land Department-based data
Things to weigh
- Still a young, developing destination
- Limited rental history
- Prices vary widely between projects
- Amenities arrive in phases
Is Dubai Islands a good investment?
Dubai Islands is one of Dubai's key early-stage waterfront markets. One Dubai Land Department-based index recorded prices around 36% higher year on year in 2026, but estimates vary because the market is young. Focus on well-positioned beachfront and lower-density homes, and on the developer's delivery schedule.
Buying and renting out in Dubai Islands
Buying costs. Budget around 4% of the price for the Dubai Land Department fee, plus smaller registration and trustee fees, and an agency fee of around 2% on resale purchases. Many off-plan launches are commission-free for buyers. See the full breakdown in how to buy property in Dubai as a foreigner.
Service charges. Owners pay an annual service charge per square foot, which varies widely between buildings. Always compare it before buying, because it has a big effect on your net rental yield.
Renting out. Long-term leases are registered through Ejari. Holiday homes need a permit from Dubai's Department of Economy and Tourism, and some buildings don't allow them. I can also arrange property management if you'd rather not manage tenants yourself.
Current launches in and around Dubai Islands
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Dubai Islands FAQs
Where is Dubai Islands?
Dubai Islands is a group of five islands off the coast of Deira, close to Dubai International Airport.
Who is developing Dubai Islands?
Dubai Islands is being developed by Nakheel.
How much does property on Dubai Islands cost?
Dubai Land Department-based estimates for Q3 2026 range from around AED 2,700 to above AED 3,400 per sq ft.
What is Bay Estates?
Bay Estates is Nakheel's first villa and townhouse release on Island E at Dubai Islands.