Palm Deira unaffected by market turmoil

ON SCHEDULE: Boyd said the Palm Deira has not been impacted by the current global economic slowdown and credit crunch. (Supplied)

The global economic slowdown and ensuing credit crunch has not hit development of the Palm Deira, the largest of three manmade islands being built off Dubai’s coast by Nakheel, a senior executive said on Tuesday.

Gavin Boyd, director of development for Palm Deira, said construction and the sale of plots on the 42.2-square kilometre project - larger than Manhatten - are still going ahead as scheduled.

“We haven’t had an impact at all. We are still releasing to the market on the timeframes we’ve said,” Boyd told Arabian Business on the sidelines of a press conference.

“No doubt there will be an impact on some players in the market, but we haven’t seen an impact on the Palm Deira.”

Boyd said Nakheel is taking a “calculated approach” to the development of Palm Deira and would time the release of plots to suit the market.

“One of our advantages is we can release over time so as the market corrects itself and comes back again, as the markets do, we will be releasing in those times to suit the market,” he said.

Asked whether that meant Nakheel is pushing back some of its releases, Boyd said: “We are not pushing back at all. We are continuing with our launch as it is.”

The first plots on Palm Deira - made up the main palm and five islands at its base - are set to go on sale later this year.

Boyd said 16 plots on the first island to be developed, Deira Island (DI) Front, will go on sale in November.  

Most of the plots will be mixed-used waterfront plots between 4,000-8.500 square metres, he said.

Boyd would give an estimate as to how much Nakheel hoped to make from the sale. “We want to test the market,” he said.

Boyd said construction of the first development on Palm Deira, a residential complex with a marina, will begin early next year. He said it will serve as a show-development for investors and third-party developers.

Boyd said Nakheel is also planning a flagship hotel on its DI Front island “as big as Atlantis”. He said an operator has already been appointed, but would not divulge who it is.

Boyd said three bridges the size of the new Al Garhoud Bridge are under construction to serve DI Front and the rest of Palm Deira.

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