Nakheel awards AED 950 million contract at Dubai Islands project

Summary

• Nakheel awarded Parkway International Contracting a construction contract exceeding AED 950 million for Bay Grove Residences.
• The deal covers 617 homes across eight towers in phases 2 and 4.
• Combined with an earlier award, contracts now exceed AED 1.75 billion across the full project.

The latest

A construction contract worth more than AED 950 million has been awarded to Parkway International Contracting for phases 2 and 4 of Bay Grove Residences on Dubai Islands, Emirates News Agency (WAM) reported. Nakheel, part of Dubai Holding Real Estate, said the package covers 617 apartments in eight residential towers, along with basement works, infrastructure and shared amenities.

Details

• The scope: According to WAM, the contract covers 617 residential units ranging from one to four bedrooms, spread across eight towers. The package also includes basement construction, site infrastructure and shared facilities such as swimming pools, play areas and fitness spaces serving residents of both phases.
• Phase 2: Nakheel said phase 2 comprises 360 units across four residential towers. Main construction works on that phase are expected to be completed by late 2028, according to the developer's timeline cited by WAM.
• Phase 4: The second portion of the award, phase 4, comprises 257 units across another four towers. Completion is expected in the second quarter of 2029, placing the final handover roughly two quarters after the phase 2 milestone.
• The earlier contract: This is Nakheel's second main construction award at the development. An earlier contract valued at more than AED 800 million covered 537 units across seven towers in phases 1 and 3, according to WAM.
• The combined value: Taken together, the two awards exceed AED 1.75 billion. That figure represents the full construction procurement for Bay Grove Residences rather than the total project investment, which Nakheel did not disclose.
• Full coverage: With both contracts in place, all 1,154 planned units across 15 towers at Bay Grove Residences are now under construction award, meaning the developer has no remaining unawarded phases at the project, according to the agency.
• The contractor: Parkway International Contracting holds both the phase 2 and phase 4 packages. Nakheel did not name the contractor on the earlier AED 800 million award for phases 1 and 3, nor detail the tender process behind either selection.
• The developer: Nakheel operates as part of Dubai Holding Real Estate. Bay Grove Residences sits on Dubai Islands, the waterfront masterplan where the developer has concentrated a series of residential launches.
• What was not stated: The announcement set out construction completion targets but did not specify sales performance, handover dates for buyers, or the share of units already sold across the four phases.

Between the lines

The sequencing is notable: Nakheel moved from a first award of AED 800 million to a larger second package exceeding AED 950 million covering more units and more towers. Awarding construction contracts for all 1,154 units signals the developer is building out the full masterplan in one continuous cycle rather than staging it against sales.

What's next

The first measurable checkpoint is completion of phase 2 main construction works by late 2028, followed by phase 4 in the second quarter of 2029. Any further Nakheel awards on Dubai Islands would indicate continued expansion.

Source: Emirates News Agency (WAM)