The World Islands in Dubai are witnessing a remarkable resurgence as new capital flows into the area, breathing life into previously stagnant projects. After over 15 years of limited activity, the islands are again capturing the attention of billionaires and family offices, signaling a significant revival in Dubai’s luxury real estate market. With pricing options ranging widely from AED 50 million ($14 million) to AED 1 billion ($272 million) for entire islands, the demand for ultra-exclusive properties is heating up.
Executives and brokers report a renewed interest in Dubai’s World Islands, a project that was initially deemed one of the most audacious real estate endeavors ever undertaken. “When The World Islands was first announced, it was seen as one of the most daring real estate projects ever attempted – pure Dubai ambition,” remarked Ben Bandari, founder and CEO of property firms Benco and DevCore. “Now… they’re viewed as an ultra-exclusive opportunity that simply doesn’t exist anywhere else in the world.”
Nakheel, the original developer behind the World Islands, completed 97 percent of reclamation as early as 2008, with a few select projects successfully delivered since then, including Lebanon Island and an Anantara resort on Argentina Island. Despite much of the archipelago lying undeveloped for years, momentum is shifting. An industry insider, speaking on the condition of anonymity, disclosed to Arabian Business that significant developers are acquiring islands for boutique hotel schemes, although these deals lack independent verification.
Global Wealth Seeks Exclusivity
After years of limited activity, the World Islands are once again seeing projects progress and properties change hands, signaling a clear shift in Dubai’s ultra-luxury real estate market.
The islands, initially envisioned as a playground for the global elite, faced a downturn in investor confidence following the 2008 financial crisis. Bandari stated that today’s buyers represent “the apex of global wealth,” comprising ultra-high-net-worth individuals, family offices, and a select number of developers. “Buyers are coming from Europe, the GCC, Russia, India, and increasingly from the US and Asia,” he explained. “These are people who already own prime properties globally. The World Islands is about adding something one-of-a-kind to their portfolio.”
The allure of prestige and scarcity has proved critical for many. “Palm Jumeirah is five minutes from Sheikh Zayed Road. The World Islands is a boat or helicopter ride away,” Bandari noted. “That’s both a challenge and a selling point. The privacy and seclusion are unmatched.” Momentum seems to further build on previous projects that demonstrated tangible demand. Notably, siblings Ali and Amira Sajwani of Amali Properties successfully sold 22 out of 24 villas on Sao Paulo and Uruguay islands shortly after their launch last May, generating sales between AED 1.4 billion and AED 1.5 billion ($380 million-$410 million).
Hospitality Expansion Accelerates
In addition to residential developments, extensive hospitality projects are underway. The Austrian developer Kleindienst Group is advancing its ambitious $6 billion Heart of Europe initiative, aiming to deliver over 5,000 hotel rooms across 20 themed properties by 2027. “Fifteen hotels are currently under construction at different stages. The remaining five will start this year,” founder and chairman Josef Kleindienst informed Arabian Business. “Our goal is for all of them to be complete by 2027.”
Heart of Europe – Sweden Island – Dubai World Islands.
This large-scale development accounts for approximately 10 percent of Dubai’s five-star hotel inventory, as indicated by Department of Economy and Tourism figures that list 52,700 existing hotel rooms. Notably, Kleindienst has opted out of traditional bank financing, utilizing a 50:50 model that combines company capital with off-plan sales. While the company offers guaranteed returns on certain units, these have not been independently verified. The only fully operational hotel under the Heart of Europe project is the voco Monaco, an adults-only boutique property that opened last year.
Five more hotels are slated for construction this year, featuring branded concepts such as Buddha-Bar Hotel and Ibiza, each adhering to a two-year build cycle. Kleindienst also revealed that floating villas, the Sweden Beach Palace at Sweden Island, and villas on Germany Island are at varying stages of completion.
Scarcity Underpins Pricing
Pricing for the Amali villas reaches up to AED 250 million ($68 million), while floating villas and suites under the Heart of Europe project are marketed similarly. Bandari emphasized that this pricing remains competitive when stacked against global trophy assets. “Branding plays a huge role,” he noted. “Owning part of the World Islands is the ultimate conversation piece.”
Amali – Dubai World Islands.
As interest in the World Islands ramps up, it reflects Dubai’s record-setting luxury market, which recorded 435 home sales exceeding $10 million in 2024—the highest of any city worldwide. A further 111 sales occurred in Q1 of 2025 alone, marking the strongest opening quarter on record, according to findings from Knight Frank. Bandari stated, “Exclusivity is another driver… you’re buying something that only a handful of people on earth will ever have.”
Nonetheless, infrastructure challenges loom ominously. The islands remain disconnected from Dubai’s municipal utilities, compelling developers to construct independent systems for essential services like power and water. Kleindienst has already invested in essential waste management and housing accommodations for around 3,000 workers involved in the developments. “The World Islands are very complex in regards to improvements, because [they’re] not connected to the infrastructure,” he explained. “Nobody in Dubai has the burden of such high-level environmental regulation like the World Islands.”
Transport remains another hurdle that needs addressing, according to Bandari. “There are talks of upgraded marina facilities, more regular transport links, and enhanced utilities – once those are in place, we could see a surge in demand,” he revealed.
With both residential and hospitality projects advancing, the transformation of the World Islands from mere concept to reality is finally underway, promising a new chapter for Dubai’s iconic development.