Nakheel Secures AED950 Million Contract to Advance Bay Grove Residences on Dubai Islands
The developer has awarded a substantial construction contract to build 617 homes across two phases of its waterfront community, bringing total investment in the scheme to over AED1.75 billion.
The steady expansion of Dubai Islands continues with purposeful momentum. Nakheel, the property development arm of Dubai Holding Real Estate, has entrusted Parkway International Contracting LLC with the construction of 617 homes at Bay Grove Residences, marking a significant phase in the island destination’s evolving landscape.
The contract, valued at more than AED950 million, encompasses Phases 2 and 4 of the development across eight residential buildings. Phase 2 will deliver 360 homes in four buildings, with completion anticipated by late 2028, while Phase 4 comprises 257 homes across an equal number of buildings, with delivery expected in the second quarter of 2029. The homes themselves span a range of configurations from one to four bedrooms, designed to accommodate diverse family structures and living preferences.
Beyond residential units, the contract encompasses basement works and the infrastructure necessary to support a complete community. Amenities include swimming pools, sports courts and fitness centres, elements thoughtfully integrated to foster a sense of community life. As we reported in our coverage of Nakheel’s marine works contract for Island B, the development is being undertaken with consideration for the waterfront environment, creating spaces that benefit from the islands’ distinctive location.
This award follows an earlier contract of more than AED800 million for Phases 1 and 3, which encompassed 537 homes across seven buildings. Combined, these two contracts represent more than AED1.75 billion in main construction investment and cover the entirety of the 1,154 planned homes across Bay Grove Residences’ 15 buildings.
Khalid Al Malik, Chief Executive Officer of Dubai Holding Real Estate, reflected on the significance of the moment: “This award marks another important step in the delivery of Bay Grove Residences, establishing a clear construction pathway for a further 617 homes. Together with the contract already awarded for Phases 1 and 3, it represents a substantial investment in the community and the long-term development of Dubai Islands. Our focus remains on delivering high-quality homes, amenities and public spaces that will create a distinctive waterfront community for residents.”
Bay Grove Residences is conceived as more than a residential enclave. The masterplan envisions landscaped communal spaces, walking and cycling routes and direct access to Crystal Beach, elements that knit together to form what developers describe as a waterfront community. Located off the coast of Deira, Dubai Islands spans 18.6 square kilometres across five islands and forms part of Dubai’s broader urban development vision, incorporating residential neighbourhoods alongside hospitality, parks, leisure and cultural destinations.
What it means for Abu Dhabi
Whilst Bay Grove Residences is located within Dubai, the scale of development across the broader UAE reflects the integrated economic prosperity of the Emirates. The AED1.75 billion investment demonstrates continued confidence in the region’s real estate sector and underscores the interconnected nature of development across the seven emirates, with construction expertise and investment flowing across emirate boundaries.
The project also exemplifies the UAE’s commitment to creating sustainable, mixed-use communities with attention to public spaces, amenities and environmental integration. Such developments set benchmarks for urban planning across the region, influencing how future communities are designed and built throughout the emirates, including Abu Dhabi’s own waterfront and island developments.
Source: WAM