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Dubai’s property market is preparing for another headline moment as DAMAC Properties readies the pre-launch of DAMAC Islands Phase 2, a follow-up to one of the city’s most talked-about waterfront communities. While the official launch date has yet to be confirmed, the development is already drawing attention among investors and end-users who see waterfront real estate as a reliable long-term bet in Dubai’s evolving landscape.
The new phase, located near Nasmah Town Square, is expected to introduce a fresh collection of four- and five-bedroom townhouses. Market insiders suggest that the starting price for a four-bedroom unit may be in the region of AED 2.75 million, while corner five-bedroom townhouses could start from AED 3.75 million. These are not final figures but indicative expectations provided by brokers close to the launch.
DAMAC’s Islands project has been positioned as one of the developer’s flagship communities, offering coastal-inspired living, extensive amenities, and proximity to some of Dubai’s busiest lifestyle hubs. The addition of Phase 2 underscores the continued demand for premium residential stock, particularly in master-planned communities that combine privacy with waterfront views.
Over the past two years, Dubai has experienced a surge in demand for luxury townhouses and villas. According to CBRE, average villa prices rose by nearly 18% year-on-year in 2024, supported by strong demand from international buyers and a relatively limited pipeline of new supply. This context makes the anticipated pre-launch of DAMAC Islands Phase 2 particularly timely, as investors look to secure allocations before wider public release.
Expressions of interest are currently being accepted by agents, with priority allocations reportedly requiring an Expression of Interest (EOI) deposit of AED 120,000. While the official sales launch will follow regulatory approvals, this early interest phase reflects how competitive the Dubai market has become for waterfront developments.
Analysts note that waterfront property has consistently commanded a premium in Dubai, whether along Palm Jumeirah, Dubai Harbour, or newer island developments. The upcoming phase of DAMAC Islands is expected to continue this trend, offering buyers the promise of both lifestyle and value appreciation. For many, the project represents more than a home; it represents a long-term investment into one of the world’s most liquid and resilient property markets.
The homes are expected to span approximately 2,300 sq.ft. for four-bedroom layouts and 3,300 sq.ft. for five-bedroom layouts. While detailed specifications remain under wraps until the official unveiling, it is understood that the design language will echo DAMAC’s recent projects, combining contemporary architecture with luxury finishes. Amenities will likely include landscaped community spaces, access to waterfront promenades, and a full suite of lifestyle facilities consistent with Dubai’s high standards for gated communities.
Market experts say the timing of this pre-launch could not be better. Dubai continues to attract new residents under long-term visa reforms, and the Golden Visa programme has expanded property-linked residency opportunities for international buyers. With mortgage rates stabilising and rental yields still among the highest in global cities, Dubai remains a strong destination for property investment.
While some analysts caution that the city’s rapid growth could lead to oversupply in certain segments, most agree that demand for prime-located, waterfront family homes remains robust. The scarcity of such properties often drives competitive allocations during pre-launch phases, with many units reserved before public campaigns begin.
For prospective buyers, DAMAC Islands Phase 2 offers the chance to participate early in a project that is set to shape a new chapter of Dubai’s waterfront living. Interested parties are being encouraged to register their interest now, with limited inventory expected to be released in this phase.
As Dubai’s property sector matures into a global investment hub, launches like DAMAC Islands Phase 2 highlight how developers are aligning supply with the city’s vision for sustainable, luxury-led growth. If interest levels are any indication, this pre-launch may become one of the most closely watched events in the final quarter of 2025.
A pre-launch development by DAMAC Properties offering new waterfront townhouses in Dubai.
The official launch date is not yet announced, but expressions of interest are open.
Four-bedroom townhouses are expected to start at AED 2.75M, while five-bedroom homes may start from AED 3.75M.
Interested buyers can submit an Expression of Interest (EOI) with a deposit of AED 120,000.
Its prime waterfront location, limited supply, and Dubai’s strong property demand make it highly sought after.
