A Dubai developer is set to award a construction contract worth at least $54m to build luxury homes on one of the islands that make up Nakheel’s The World project, it was reported on Tuesday.
AA Properties Dubai plans to build luxury villas and houses on the Taiwan Island as it targets wealthy foreign buyers, Bloomberg reported.
The real-estate broker and developer will award a construction contract worth AED200-300m to Arabtec Holding, AA Properties partner Jeroen van der Geer said in an interview with the newswire.
The company plans to build 12 beach villas on the island, priced at $8.2m to $9.5m, as well as three houses, he said.
“As soon as we get the building approval, we can finalise the contact with Arabtec,” Van der Geer said, adding he expects developer Nakheel to give its consent within a month.
AA Properties bought the 20,000 square-metre (215,000 square-foot) island from Nakheel last year for AED55 million, Bloomberg added.
Van der Geer said selling the real estate will be “challenging” in a market where values have fallen for two years.
AA Properties will market the villas mainly in Asia and Europe to “people who have a lot of money and just want to have something special and unique in Dubai,” he said.
The company plans to start villa construction by the end of this year and to complete the project two years later.
Last month, it was announced that construction had begun on the first villas on Germany on the manmade island development of The World.
Kleindienst Group appointed Dubai-based City Diamond Contracting to start construction of villas on Germany, one of the six manmade islands that make up The Heart of Europe development on The World.
City Diamond Contracting, which previously built the villas in Emirates Hills, will build 20 villas on Germany, following the a four-month stabilisation process which was completed last month.
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