Dubai Islands Guide 2026: Nakheel's New 320m Beach, Bay Villas and What's Being Built

Dubai Islands is back in the news. On 8 October 2026, Nakheel announced a marine works contract that will add 320 metres of new beach frontage beside Bay Villas and upgrade about 3km of the western shoreline of Island B, with completion expected in Q4 2027. It is the fourth major Dubai Islands contract Nakheel has announced in just over a year, following the AED 2.6 billion Bay Villas construction award, an AED 527 million infrastructure package and an AED 800 million contract for Bay Grove Residences.

For buyers and investors, those contracts matter more than any brochure. They show what is actually being built, by whom and on what timeline. This guide brings that information together in one place: what Dubai Islands is, how the master plan has changed, which hotels and amenities already operate, which residential projects are under way, what properties are listed for, how the islands connect to the rest of Dubai, and the questions to ask before you buy.

Quick answer: Dubai Islands is Nakheel's five-island waterfront master community off the coast of Deira, formerly known as Deira Islands. Nakheel's latest figures describe 18.6 sq km of land, more than 20km of beaches, and capacity for over 230,000 residents, about 62,000 homes, more than 11,000 hotel keys and over 4,000 branded residences. Three hotels and the Nakheel marina are already operating, while Nakheel's own residential communities, including Bay Villas, Bay Grove Residences and Rixos Hotel & Residences, are under construction. The new 320m beach near Bay Villas is due in Q4 2027.

What Is Dubai Islands?

Dubai Islands is a group of five reclaimed islands on Dubai's northern coastline, extending the historic Deira waterfront into the Arabian Gulf. The master developer is Nakheel, the company behind Palm Jumeirah, which is now part of Dubai Holding Real Estate alongside Meraas and Dubai Properties.

Nakheel lists the five islands as Central Island, Marina Island, Shore Island, Golf Island and Elite Island. Recent contract announcements also refer to the islands by letter, which is why you will see Bay Villas and the new beach described as being on "Island B" and infrastructure work coordinated with "Island A".

The community is planned as a mix of beachfront homes, hotels and resorts, marinas, golf, parks, retail and cultural spaces. Nakheel says the plan is aligned with the Dubai 2040 Urban Master Plan, the emirate's long-term framework for where people will live and work.

Dubai Islands in Numbers

One reason people search for the Dubai Islands master plan is that the published numbers have changed several times. The table below shows the figures Nakheel has used most recently, with the date of each source, so you can see which is current.

Earlier Nakheel material from 2023 and 2024 describes the islands as 17 sq km with 20km of beaches. In April 2026 Nakheel described capacity for more than 231,000 residents in 49,000 homes, and by October 2026 that had become about 62,000 homes. If you are reading an older guide or a project brochure, check its date before relying on its figures.

From Palm Deira to Dubai Islands: A Short History

Many buyers are surprised to learn that Dubai Islands is not a new idea. It is the third version of a project that started more than 20 years ago, and the history explains why some parts of the islands already look finished while others are still sand.

Two practical points come out of this timeline. First, much of the land was reclaimed years ago, which is why hotels and the souk could open before the current residential phase began. Second, the 2022 rebrand marked a shift from a retail and trading focus towards high-end residential and hospitality, which is the phase buyers are now investing in.

The Latest News: A New 320m Beach and a 3km Shoreline Upgrade

The announcement that pushed Dubai Islands back up the search rankings came on 8 October 2026. Nakheel awarded the marine and beach works contract for Island B to Mar Marine & Building Contracting L.L.C. Here is what the contract includes, based on Nakheel's release and Khaleej Times' report of the same day.

• 320 metres of new beach frontage next to the Bay Villas community.

• An upgrade of about 3km along the western shoreline of Island B.

• New breakwaters to protect the shoreline.

• Removal of existing rock revetments, the sloped rock walls that currently protect parts of the coast.

• Refurbishment and remedial work on several existing beach areas on the western side of Island B.

• Completion expected in Q4 2027.

Khalid Al Malik, CEO of Dubai Holding Real Estate, said the upgrades will create "a high-quality coastal environment that develops in step with the wider masterplan." In plain terms, the work replaces engineered rock edges with usable beach and brings the shoreline up to the standard expected by the villa community behind it.

Why the Beach Contract Matters for Buyers

Beach access is one of the main reasons people buy on Dubai Islands, so a contract that turns rock revetment into sand has a direct effect on how the community will be lived in. There are three practical takeaways.

1. The Bay Villas setting is taking shape. Bay Villas is the community the new beach sits beside. With the villa construction contract awarded in 2025 and the beach contract in 2026, the two are being delivered on overlapping timelines.

2. Amenity timing is now clearer. Nakheel has given a Q4 2027 completion target for the marine works. Buyers can compare that with the handover date in their own sale and purchase agreement and plan for a period where homes may be ready before every part of the shoreline is finished.

3. It signals continued master developer investment. In a market where supply is rising, buyers often look at whether the master developer is still spending on infrastructure and public realm. Four large contracts in roughly 14 months is a measurable sign that work on Island B is moving.

What's Being Built: The Island B Contract Pipeline

Island B is where most of Nakheel's own residential activity is concentrated right now. The following contracts have been publicly announced by Nakheel and Dubai Holding.

Read together, these contracts cover the homes, the roads and utilities that serve them, and the coastline in front of them. The infrastructure package is especially relevant for future residents because it covers services such as district cooling and sewage that every building on the island depends on.

Nakheel's Residential Projects on Dubai Islands

Nakheel has launched three main residential communities on Dubai Islands so far. All three are off-plan and under construction, and Nakheel has described Bay Grove Residences as sold out.

Bay Villas

Bay Villas is the project most closely tied to the new beach. Sales opened in July 2024, and in August 2025 Nakheel awarded the AED 2.6 billion construction contract for the 636-home community to Fibrex Contracting, the contractor that previously worked with Nakheel on District One West in Mohammed Bin Rashid Al Maktoum City.

Home types: According to Nakheel's contract announcement, the community includes townhouses, semi-detached villas, garden villas, waterfront villas and beachfront villas.

Community amenities announced by Nakheel:

• Three pool houses

• A beach club

• A central park

• Swimming pools and sports facilities

• Children's playgrounds and landscaped parks

• Green corridors leading to the waterfront, with walking and jogging paths

Unit sizes and payment plan: Property Finder's project page for Bay Villas lists the following configurations, a launch payment plan of 20% on booking, 60% during construction and 20% on handover, and an expected completion of June 2027. The page shows the launch inventory as sold out, so new buyers will mostly be looking at resale units.

If you are considering a Bay Villas resale, ask the seller for the original sale and purchase agreement, a statement of payments made to date and the developer's current handover estimate. Resale prices vary widely by plot position, so a beachfront villa and an inner townhouse should not be compared on price alone. You can compare current options with other villas for sale in Dubai and townhouses for sale in Dubai to see how pricing stacks up against established communities.

Bay Grove Residences

Bay Grove Residences was Nakheel's first apartment community on Dubai Islands designed around promenade living. It was unveiled in October 2024, with further phases released from December 2024.

• Total size: 1,154 homes across 15 residential buildings once complete.

• Phases 1 and 3: 537 homes in seven buildings (296 homes in four buildings in Phase 1 and 241 homes in three buildings in Phase 3). The AED 800 million construction contract for these went to Metac General Contracting in September 2026, with main works expected to finish in late 2028.

• Phases 2 and 4: 617 homes still in planning, with further contracts to be announced.

• Unit types: One, two and three-bedroom apartments, four-bedroom duplexes and penthouses.

• Amenities: A green podium with an infinity pool, a raised ocean pool, podium gardens, children's play areas, a clubhouse, a residents' lounge and a fitness centre with yoga space.

• Beach: Nakheel says residents will have access to Crystal Beach.

Nakheel said the sell-out of Bay Grove Residences "demonstrates the depth of demand for high-quality waterfront homes in Dubai." For buyers today, that means entry is through the resale market, where sellers may be assigning contracts before handover.

Rixos Hotel & Residences Dubai Islands

Launched in July 2023 with Excelsior Real Estate, Rixos Hotel & Residences was Nakheel's first luxury hotel and residential offering on Dubai Islands. The project sits in a secluded cove with direct access to a 700-metre beach.

• One, two and three-bedroom apartments with shaded overhanging terraces

• Four-bedroom duplexes with private pools

• Beach houses with private gardens and terraces

• Ten luxury villas with marine views

• Hotel-style lobbies, residents' lounges, infinity pools, a spa and a fitness centre

A second phase, Rixos Beach Residences, was launched in November 2023. Branded residences like Rixos appeal to buyers who want hotel services and an operator-managed environment, but they usually carry higher service charges than standard apartments, so ask for the latest service charge estimate before you commit.

Other Developers on Dubai Islands

Nakheel is the master developer, but it is not the only company selling homes on the islands. Bayut's Dubai Islands listings in October 2026 include projects such as Bay Estate, Ellington Sands, Samana Ocean Crest, Hado by Beyond and the Meriva Collection, alongside Nakheel's own communities. This mix gives buyers a wider range of price points, from smaller apartments by third-party developers to large villas in Nakheel's gated communities.

When a project is built by a different developer on Nakheel land, two parties matter: the project developer, who is responsible for the building and its handover, and Nakheel, which is responsible for the surrounding infrastructure and public areas. Check the track record of both.

Dubai Islands Property Prices in 2026

Dubai Islands is still mostly an off-plan market, so prices depend heavily on the developer, the handover date and the payment plan. The figures below come from Bayut's Dubai Islands listing pages as viewed on 12 October 2026. They are asking prices and portal averages rather than official valuations, so treat them as a starting point.

Sample Listings and What They Tell You

The examples below are individual listings shown on Bayut in October 2026. They are not a price list, but they show how unit size, handover date and payment plan vary across the islands.

Two things stand out. First, handover dates stretch from 2027 to 2031, so you are buying into a community at very different stages depending on the project. Second, payment plans range from 50/50 to 90/10. A 90/10 plan means most of the price is paid during construction, while a 50/50 plan leaves half due at handover, which can suit buyers who plan to finance with a mortgage once the unit is complete. You can test different scenarios with the Luxora mortgage calculator.

How Dubai Islands Compares With Its Neighbours

Bayut's area data also shows average DLD transaction prices in nearby locations, which helps put Dubai Islands in context.

Dubai Islands already transacts above Deira on average, which reflects its newer, waterfront stock. Averages like these are heavily influenced by the type of property sold in each period, so a few large villa sales can lift an average sharply. For a more complete view of the wider market, see Luxora's market insights.

What About Rental Yields?

Because most residential projects on Dubai Islands have not yet been handed over, there is very little rental history for homes on the islands. Any yield figure quoted today is a projection, not a track record. If rental income is your main goal, ask your adviser to base estimates on comparable completed waterfront communities and on realistic service charges, and treat projections from sales material with caution.

Beaches, Marinas, Hotels and Things to Do

Unlike many off-plan communities, Dubai Islands already has a working leisure offer. This matters for buyers because it shows how the area will function once more residents arrive.

Beaches

Nakheel describes more than 20km of beaches on Dubai Islands, including a Blue Flag certified beach. Blue Flag is an international eco-label awarded to beaches that meet standards on water quality, safety and environmental management. In December 2023 Nakheel announced Blue Flag accreditation for eight of its beaches across Jebel Ali, Palm Jumeirah and Dubai Islands. Dubai Islands Beach, next to the Centara and Riu hotels, is the best-known public stretch today, and the new Island B beach near Bay Villas will add to it from Q4 2027.

Nakheel Marinas Dubai Islands

Nakheel launched its marina on Dubai Islands in May 2023. According to Nakheel, it offers:

• 248 wet berths for vessels up to 47 metres

• Space for 13 superyachts at a time

• 40 dry berths for trailers up to 20 metres

• 24/7 dock assistance, gated access and CCTV

• Parking, showers, washrooms and a laundrette

The marina is within walking distance of Dubai Islands Beach and next to the two largest hotels, which makes it a practical base for boat owners who want to live on the islands.

Hotels Already Open

These three hotels account for around 1,566 rooms. Nakheel's plan is for more than 11,000 hotel keys in total, so the hospitality side of the islands is still at an early stage. For residents, the open hotels already provide restaurants, beach access and leisure facilities such as Centara Mirage's water park.

Souk Al Marfa

Souk Al Marfa opened its first phase in August 2021. Nakheel describes it as a fully air-conditioned marketplace stretching 1.9km along the Deira Islands waterfront, with retail stores, showrooms, kiosks and street food, plus 4,000 parking spaces. It is a value-focused shopping destination rather than a luxury mall, and it gives the islands day-to-day retail that many new communities lack in their early years.

Getting There: Location and Connectivity

Dubai Islands sits off the Deira coast, between the mouth of Dubai Creek and Al Mamzar. That location is one of its main selling points: it is a beachfront community close to the airport and the older city, rather than on the far side of Dubai Marina.

Road Access

Nakheel says three bridges connect the islands to the mainland, linked to the Al Shindagha Corridor. The best-known part of that corridor is the Infinity Bridge over Dubai Creek, which the RTA opened in January 2022. It has six lanes in each direction and capacity for up to 24,000 vehicles per hour, and it raised the number of lanes crossing Dubai Creek from 48 to 60.

Travel Times From Dubai Islands

Nakheel publishes the following indicative drive times from Dubai Islands. Actual times depend on traffic, especially at peak hours on the corridors into Deira.

Public Transport

There is no metro station on the islands themselves. The closest Dubai Metro access is Gold Souq station on the Green Line, about 10 minutes away by car. For now, most residents and visitors will rely on cars, taxis and ride-hailing. Nakheel also refers to water access and water transportation as part of the master plan, so it is worth watching for marine transport announcements as more residents move in.

Schools, Healthcare and Everyday Services

Because the islands are still being built, most schools, hospitals and supermarkets that future residents will use are on the Deira mainland. Families should plan the school run before buying.

• Schools and nurseries: A range of British, Indian and Arabic-curriculum schools and nurseries operate in Deira, Al Qusais and Al Mamzar. Check KHDA ratings and waiting lists for your preferred schools early.

• Healthcare: Government hospitals in Deira, including Dubai Hospital, are within a short drive, along with private clinics in Deira and Port Saeed.

• Groceries and daily needs: Souk Al Marfa and supermarkets in Deira cover everyday shopping, with more retail planned on the islands as the master plan develops.

Expect community-level facilities, such as nurseries, clinics and convenience stores, to arrive in phases alongside residential handovers. If immediate access to established schools is a priority, compare Dubai Islands with completed communities on Luxora's Dubai communities pages before deciding.

Dubai Islands vs Other Nakheel Waterfront Communities

Buyers looking at Dubai Islands are often also considering Palm Jumeirah, Nakheel's established island, and Palm Jebel Ali, its newer large-scale project. Here is how they compare in practical terms.

You can explore the established alternative on Luxora's Palm Jumeirah community page, or compare marina living in Dubai Marina.

How to Buy Property on Dubai Islands

Most purchases on Dubai Islands are either off-plan from a developer or resale of an off-plan contract before handover. The process below covers both.

1. Set your budget and timeline. Decide how much you can pay during construction and how much on handover. This determines which payment plans and projects fit.

2. Shortlist projects by developer and handover date. Compare Nakheel's own communities with third-party projects, and check how far each building has progressed.

3. Check the project is registered. Off-plan projects in Dubai must be registered with the Dubai Land Department (DLD), and buyer payments go into a project escrow account. Ask for the project's registration details and escrow account information.

4. Review the sale and purchase agreement (SPA). Look for the anticipated completion date, the grace period for delays, what happens if the project is late, the service charge estimate and any restrictions on reselling before handover.

5. Pay the booking amount and register the sale. The developer registers the off-plan sale with DLD through the Oqood system. DLD's initial sale service lists a registration fee of 4% of the sale value, shown as 2% for the seller and 2% for the purchaser, plus small knowledge and innovation fees. Confirm in the SPA who pays these fees.

6. For resale before handover, get developer approval. Assigning an off-plan contract to a new buyer usually needs a no-objection certificate (NOC) from the developer, and some developers require a minimum percentage to be paid before they allow resale.

7. Track construction and prepare for handover. Arrange your mortgage, if needed, before the final payment and plan for the snagging inspection when the unit is ready.

Can Foreigners Buy on Dubai Islands?

Nakheel sells Dubai Islands homes to international buyers, and non-UAE nationals can own property in Dubai's designated freehold areas under Dubai Law No. 7 of 2006 and Regulation No. 3 of 2006. Always confirm the title type for the specific unit with the developer and DLD before you pay, especially for third-party projects.

Does a Dubai Islands Property Qualify for a Golden Visa?

According to the UAE government portal, the real estate investor route to a Golden Visa requires a minimum investment of AED 2 million. Many Dubai Islands homes are priced above that level. Eligibility rules for off-plan property and mortgaged property can change, so check the current requirements with the relevant authority or your adviser before buying with a visa in mind.

Is Dubai Islands a Good Investment? Pros and Considerations

"Is Dubai Islands a good investment?" is one of the most searched questions about the area. There is no single answer, because it depends on your budget, timeline and goals. The points below are meant to help you judge whether the community fits your plans.

Points in Its Favour

• Beachfront supply in a central location. Beach homes this close to the airport and the old city are rare in Dubai.

• An active master developer. Nakheel has awarded construction, infrastructure and marine contracts worth more than AED 3.9 billion on Island B since August 2025, based on the disclosed values.

• Existing leisure and hospitality. Three hotels, a marina, a public beach and Souk Al Marfa already operate, so the area is not starting from zero.

• Proven demand for Nakheel's launches. Bay Villas' launch inventory is shown as sold out on Property Finder, and Nakheel has described Bay Grove Residences as sold out.

• A wide price range. Third-party projects create entry points well below Nakheel's villa communities.

Points to Weigh Carefully

• A long construction horizon. Handover dates in current listings run from 2027 to 2031, and the full master plan stretches well beyond that. Early residents will live alongside active building sites.

• Limited rental and resale history. With few completed homes, there is little data on actual rents, voids or resale liquidity.

• Rising supply across Dubai. Large volumes of off-plan stock are due for completion across the city in the next few years. Compare your expected exit price with what similar completed homes are selling for.

• Service charges are not yet proven. Waterfront and branded communities often have higher running costs. Ask for written service charge estimates.

• Amenity phasing. Schools, clinics and larger retail will follow residents rather than lead them, so the first years may involve more driving to the mainland.

A sensible approach is to buy only what you can hold through the full construction period and a few years after handover, and to choose projects from developers whose delivery record you have checked.

Who Is Dubai Islands Best Suited For?

• End users who want a beach home near the airport. Frequent flyers and people working in Deira, Port Rashid or the older business districts will appreciate the shorter commute compared with the southern coastal communities.

• Boat owners. The Nakheel marina, with superyacht berths and dry storage, makes Dubai Islands one of the more practical places in Dubai to live near your boat.

• Medium to long-term investors. Buyers who can wait for the community to mature are best placed to benefit from the infrastructure now under way.

• Buyers of branded residences. Rixos and other branded projects suit owners who want hotel services and a managed environment.

It is less suited to buyers who need to move in immediately, families who want established schools within walking distance, or investors who need rental income from day one.

Key Dates to Watch, 2026 to 2029

Dates are developer or portal estimates and can move. Build some buffer into any plan that depends on them.

Final Thoughts

Dubai Islands has moved from a long-delayed reclamation project to an active construction site with clear timelines. The October 2026 beach contract adds a visible piece to that picture: 320 metres of new sand beside Bay Villas and a 3km shoreline upgrade due by the end of 2027, on top of the villa, apartment and infrastructure contracts already awarded.

For buyers, the opportunity is a beachfront address close to Deira and the airport, with a developer that is visibly investing. The trade-off is time. Most homes are still being built, rental history is thin and community services will arrive in stages. If that horizon suits you, focus on the developer's delivery record, the payment plan and the realistic handover date rather than headline prices.

When you are ready to compare options, browse properties for sale in Dubai, including apartments for sale in Dubai, or explore new launches on Luxora's projects page. Our area guides cover other waterfront communities, and if you are thinking about renting first, our guide to Ejari in Dubai explains how tenancy registration works. For advice on a specific Dubai Islands unit, speak with one of our Luxora agents or contact the Luxora team.