Dubai Islands Area Guide 2026: Waterfront Living on Deira Islands
Comprehensive Dubai Islands guide featuring 72 projects, AED 1,150/sqft average prices, 18.3% year-over-year appreciation, and 7.5% rental yields. Explore Nakheels transformative waterfront development.
Key Takeaways
- Dubai Islands is a major Nakheel master community consisting of five islands, adding 21km of new public beach space to Deira.
- Waterfront apartments provide gross yields of 6% to 7.5%, while holiday home rentals can exceed 8% gross due to tourism appeal.
- Infrastructure upgrades, including direct bridge access from Deira, place Dubai International Airport (DXB) just 15-20 minutes away.
- The community represents a strong early-entry capital appreciation play as development shifts northwards from saturated southern corridors.
Dubai Islands Area Guide 2026: Waterfront Living on Deira Islands
TL;DR / Key Takeaways
- Waterfront Vision: A massive Nakheel master-planned community consisting of five interconnected islands spanning 17 square kilometers, designed to blend resort-style residential living with leisure.
- Favorable Rental Yields: Apartments are expected to yield 6% to 7.5% gross, with short-term holiday rental models projected to achieve between 7.5% and 9% gross as tourism infrastructure completes.
- Luxury Price Range: Entry levels for off-plan luxury apartments start around AED 1.8M to 2.7M, while premium beachfront villas command between AED 5.8M and AED 46M.
- Golden Visa Qualification: Most property purchases in Dubai Islands easily satisfy the AED 2 million threshold required for the UAE's 10-year Golden Visa.
Introduction: Dubai's New Waterfront Masterpiece
Dubai Islands, formerly known as Deira Islands, is one of the most ambitious waterfront master developments launched by Nakheel PJSC. Located off the coast of Deira, this massive project stretches across five distinct islands—Central Island, Shore Island, Golf Island, Marina Island, and Elite Island—spanning a combined area of 17 square kilometers.
Conceived as a modern extension of Dubai's historic coastal trading hubs, Dubai Islands is designed to offer a unique blend of resort-style residential living, commercial plazas, championship golf courses, and upscale hospitality. The master plan aligns with the Dubai 2040 Urban Master Plan, focusing on expanding the city's public beaches and developing sustainable, pedestrian-friendly neighborhoods. For investors, Dubai Islands represents an early-entry, high-upside opportunity to acquire prime beachfront real estate before the community reaches mature, peak-valuation stages.
The Master Plan: Five Interconnected Islands
Nakheel's vision splits the development into five distinct islands, each serving a unique lifestyle and residential function:
1. Central Island
The commercial and entertainment hub of Dubai Islands. It features theme parks, the Souk Al Marfa retail market, multiple family hotels, and mid-to-high-rise residential apartment buildings. It serves as the primary gateway connecting the islands to the Deira mainland. Central Island already hosts fully operating resorts including the Riu Hotel and the Centara Mirage Beach Resort, establishing an immediate hospitality footprint.
2. Shore Island
A dedicated resort community featuring premium wellness hotels, public beach paths, and private residential beachfront villas. This island emphasizes wellness and tranquil seaside living.
3. Golf Island
Designed for sports enthusiasts, this island will feature a championship 18-hole golf course surrounded by low-density luxury villas and high-end townhouses overlooking the fairways. It offers a unique combination of green fairways and blue waters.
4. Marina Island
The yachting and maritime hub. It features extensive marina facilities, yacht clubs, and waterfront residential boardwalks lined with boutique retail shops and cafes. It is designed to accommodate yachts of all sizes, offering a premium lifestyle for maritime enthusiasts.
5. Elite Island
The most exclusive island, dedicated to ultra-luxury beachfront mansions, gated private estates, and luxury boutique resorts catering to high-net-worth individuals. This island represents the pinnacle of private waterfront luxury in the northern part of the city.
Infrastructure & Accessibility: The AED 786M Bridge and Beyond
A major factor supporting the valuation of Dubai Islands is the massive investment in connectivity infrastructure. In April 2025, Dubai's Roads and Transport Authority (RTA) awarded a major contract worth AED 786 million to construct a new bridge connecting Dubai Islands directly to Bur Dubai. This project involves building a 1,425-meter-long bridge spanning Dubai Creek, positioned between the Infinity Bridge and the Port Rashid development area. The bridge will feature four lanes in each direction, with a total capacity of 16,000 vehicles per hour, and will rise 18.5 meters above the water to allow a 75-meter-wide navigational channel for vessels.
In addition to the main bridge, Nakheel has awarded major internal infrastructure contracts to support development. In April 2026, Nakheel awarded a AED 527 million contract to Al Nasr Contracting Company for primary infrastructure and utility networks on Island B of Dubai Islands. The scope includes roads, paving, and utility networks (water, electrical, telecommunications, and sewage) to support future residential and hospitality developments. Furthermore, in October 2025, Nakheel awarded a AED 169 million contract to Al Nasr Contracting Company for internal roadworks and utilities at the Bay Villas project.
These upgrades ensure direct vehicle access from the Infinity Bridge corridor, reducing travel times to central districts:
- Deira Gold Souk / Historic Center: 10 minutes.
- Dubai International Airport (DXB): 15-20 minutes.
- DIFC / Downtown Dubai: 20-25 minutes.
Property Prices and Market Trends 2026
Property sales in Dubai Islands are primarily concentrated in the off-plan launch phase, with several premium developers launching luxury waterfront apartments and villas. A key development is the Rixos Dubai Islands Hotel & Residences, scheduled for handover in Q4 2026. This project includes luxury apartments, duplexes, beach houses, and a limited collection of standalone villas, typically following an 80/20 payment plan. Standalone beach villas at Rixos have been priced in the range of AED 30 million+, while apartments started around AED 2.6 million.
Other notable launches include Bay Villas by Nakheel, which features townhouses and standalone villas starting around AED 4 million to AED 5.2 million with an anticipated completion in Q2 2027. In March 2026, Nakheel introduced Bay Estates (Island E), featuring exclusive 3-to-7-bedroom villas starting from AED 4.7 million.
Average Sales Prices (Q2 2026)
| Property Type | Typical Size / Bedrooms | Starting Sales Price (AED) | Average Price per Sq. Ft. |
|---|---|---|---|
| Waterfront Apartment | 1-Bedroom | 1,800,000 - 2,500,000 | AED 2,000 - 2,300 |
| Waterfront Apartment | 2-Bedroom | 2,700,000 - 4,200,000 | AED 2,100 - 2,400 |
| Beachfront Townhouse | 3-Bedroom | 5,500,000 - 7,800,000 | AED 2,200 - 2,500 |
| Beachfront Villa | 4 & 5-Bedroom | 12,000,000 - 46,000,000+ | AED 2,400 - 3,500+ |
Market Dynamics
Sales values in Dubai Islands are experiencing positive upward momentum, supported by the scarcity of prime beachfront land in Dubai. As areas like Dubai Marina and Palm Jumeirah reach full development, buyer demand has shifted to Dubai Islands and the neighboring Maritime City corridor. The early-entry pricing relative to southern waterfront areas makes it highly attractive for capital appreciation.
Rental Yields & Holiday Home Potential
Investors evaluating Dubai Islands can target two primary rental strategies:
1. Long-Term Rentals (Standard Assured Yields)
Standard long-term lease models are projected to generate solid yields. Studio and 1-bedroom apartments are estimated to achieve between 6% and 7.5% gross, while larger 2-to-3-bedroom units will yield 5.5% to 6.5% gross. Beachfront villas are expected to yield 4.5% to 5.8% gross, with higher returns driven by long-term corporate executives and expat families.
2. Short-Term Holiday Rentals (Premium Yield Model)
Given the community's resort-style design, extensive public beaches, and hotel infrastructure, the short-term holiday rental market is expected to outperform. Fully managed holiday apartments can generate net yields of 7.5% to 9% annually, driven by peak tourism seasons and beach tourism. The addition of 21 kilometers of beachfront and direct RTA bridge links makes it a prime tourism hub.
Lifestyle, Retail & Entertainment
Dubai Islands is designed as a resort-style destination. Major lifestyle projects include:
- Souk Al Marfa: A massive, fully air-conditioned indoor market featuring wholesale and retail shops, dining outlets, and a waterfront promenade.
- Deira Mall: A mega-retail development planned by Nakheel, which will serve as one of the largest shopping malls in the Deira district.
- Public Beaches: Over 21 kilometers of pristine, white-sand public beaches, featuring water sports hubs, beach clubs, and jogging trails.
- Marinas: Yacht berths capable of accommodating superyachts, complete with refueling and maintenance facilities.
Frequently Asked Questions
1. Is Dubai Islands freehold for foreign buyers?
Yes. Dubai Islands is a designated freehold development, enabling foreign buyers and international investors to secure 100% full property ownership rights.
2. Who is the developer of Dubai Islands?
The master infrastructure, land reclamation, and primary community amenities are developed by Nakheel PJSC, the developer behind Palm Jumeirah and the World Islands.
3. What was Dubai Islands called previously?
The project was originally launched as Deira Islands. In 2022, Nakheel rebranded and redesigned the development as Dubai Islands to align with the city's modern focus on luxury beachfront lifestyle and resort living.
4. What are the key premium residential developments on the islands?
Key launches include the Rixos Dubai Islands Hotel & Residences (handover Q4 2026), Bay Villas (expected Q2 2027), and the newly launched Bay Estates on Island E (March 2026).
5. How does the new RTA bridge impact commute times?
The AED 786 million bridge project connecting Bur Dubai to Dubai Islands significantly improves traffic flow, allowing up to 16,000 vehicles per hour and cutting travel time to Dubai International Airport (DXB) to 15-20 minutes.