Construction of The Palm Jumeirah Dubai island began in June 2001 and the developers announced handover of the first residential units in 2006.

[8] In 2009, The New York Times reported that NASA's laser altimeter satellites had measured the Palm as sinking at the rate of 5 mm (0.20 in) per year.

[9] In response the developer, Nakheel Properties said they had received no reports of structural problems of a type that would be expected if there were any subsidence, and pointed out that the laser satellites had a measurement resolution of only 50 mm (2.0 in).

[19] In early 2020, due to the reduction of human activity during the COVID-19 pandemic, an increase in wildlife, such as dolphins, around The Palm Jumeirah was observed.

This increase was attributed to the developer miscalculating the actual cost of construction and requiring the raising of additional capital, although they had never commented publicly on the matter.

[citation needed] The New York Times reported in 2009 that many people had bought houses before they were built and are furious about the space available now and the way they seem to be living on top of each other.