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DUBAI/GULF TIME
The Dubai real estate market has once again set a historic benchmark, recording total transaction value of AED 598.3 billion from 1 January 2025 until the end of last week. The figures, released by the Dubai Land Department, comprise 190,962 transactions, of which AED 343.02 billion were for completed properties and AED 255.28 billion for off-plan sales.
These record-breaking numbers underscore the pivotal role of waterfront developments as the primary growth engine, fully aligned with the accelerated execution of the Dubai Urban Master Plan 2040, which prioritizes doubling the length of public beaches and expanding tourism and hospitality zones along the coastline. Coastal residential prices have maintained a steady annual appreciation of 9.6%, while luxury waterfront projects continue to deliver rental yields of 8–10%.
Commenting on the market performance, Vaina Baskaran, Vice President – Customer Relations & Revenue Management at The Heart of Europe in Dubai, said:
“What Dubai is experiencing today represents a fundamental and qualitative shift in the role of waterfronts within the city’s urban fabric. They have evolved far beyond aesthetic appeal or scenic value and are now a strategic pillar guiding major capital flows, in complete harmony with the Dubai 2040 Urban Master Plan.”
Ms. Baskaran pointed out that this year’s landmark figures – approaching AED 600 billion in sales across more than 190,000 transactions – clearly demonstrate that an increasing share of institutional and private investment is being channelled into waterfront projects. These assets combine robust recurring income with sustained capital appreciation, supported by the scarcity of prime coastal supply and unrelenting global demand for Dubai real estate.
She added that the investment rationale for waterfront properties has matured well beyond the traditional “location and view” paradigm. It now encompasses the quality and diversity of uses, infrastructure excellence, service integration, and seamless alignment with large-scale urban expansion initiatives. As a result, coastal assets in Dubai are increasingly regarded as a renewable store of capital value.
According to Ms. Baskaran, leading international research firms forecast continued strong capital gains in waterfront real estate through 2030, fuelled by sustained tourism growth and rising demand for fully integrated luxury lifestyle offerings.
In this context, she highlighted The Heart of Europe as the quintessential embodiment of this transformation. Located within The World Islands archipelago off the coast of Dubai, the $6 billion mega-project spans approximately six million square feet across six European-inspired islands (Sweden, Germany, Switzerland, St. Petersburg, Venice, and Main Europe). The development features floating seahorses villas, beachfront palaces, underwater living suites, and pioneering climate-control technology that delivers artificial rain, snow, and year-round temperature moderation.
From an investment perspective, The Heart of Europe offers a guaranteed net yield of 8.33% per annum for a full 12 years – equating to 100% capital recovery within the contract period – while investors retain full upside from any additional capital appreciation. Upon phased completion between 2025 and 2027, the destination will comprise 14 luxury hotels and resorts, thousands of keys, and a daily guest capacity exceeding 16,000 visitors, ensuring long-term, resilient cash-flow generation.
Ms. Baskaran concluded:
“Every investor in The Heart of Europe today is not merely acquiring a property unit; they are becoming an active partner in Dubai’s extraordinary narrative – one that is systematically transforming every linear metre of waterfront into a perpetual generator of wealth, innovation, and investment certainty.”
About the Spokesperson
Vaina Baskaran serves as Vice President – Customer Relations & Revenue Management at The Heart of Europe, Dubai. Acting as the primary bridge between operational leadership and the project’s international investor community, she oversees post-sales operations, investor relations, and structured payment solutions. With more than two decades of experience in the UAE real estate and hospitality sectors, Ms. Baskaran is widely recognized as a trusted authority on waterfront investment opportunities in Dubai.