Nucleation layer formation is a key factor for high quality gallium nitride (GaN) growth on a sapphire substrate. We found that the growth rate substantially affected the nucleation layer morphology, thereby having a great impact on the crystal quality, surface morphology and electrical properties of AlGaN/GaN heterostructures on sapphire substrates. A nucleation layer with a low growth rate of 2.5 nm/min is larger and has better coalescence than one grown at a high growth rate of 5 nm/min. AlGaN/GaN heterostructures on a nucleation layer with low growth rate have better crystal quality, surface morphology and electrical properties.