Nakheel Awards AED 800 Million Construction Contract for Bay Grove Residences on Dubai Islands

DUBAI, UAE — Sept. 17, 2026 — Nakheel, a member of Dubai Holding Real Estate, has awarded a main construction contract worth more than AED 800 million — approximately USD 218 million — to Metac General Contracting Co for Phases 1 and 3 of Bay Grove Residences on Dubai Islands, the company announced Wednesday.

The contract covers the construction of 537 one- to four-bedroom homes across seven residential buildings. Phase 1 comprises 296 homes across four buildings, while Phase 3 comprises 241 homes across three buildings. Main construction works are anticipated to be completed in late 2028.

Scope of Work and Amenities

Beyond the residential units, the contract scope includes basement works, associated infrastructure, and a suite of resident amenities: swimming pools, play courts, and a fitness centre. The project is designed as a waterfront community with landscaped communal areas, walking and cycling routes, and access to Crystal Beach.

Muhammad Sadiq Abdullah, Managing Director of Metac General Contracting Co, said the firm's teams are mobilized and focused on safety, quality, and program management throughout delivery. "We look forward to applying our technical expertise to the project and contributing to the continued progress of Dubai Islands," he said.

Khalid Al Malik on Demand and Delivery

Khalid Al Malik, Chief Executive Officer of Dubai Holding Real Estate, said the sell-out of Bay Grove Residences reflects the depth of demand for waterfront homes in Dubai. "This contract award, worth more than AED 800 million, moves the community into its next stage of delivery and marks another important step in the development of Dubai Islands," he said. "Our focus remains on disciplined execution and enduring quality as we create a distinctive coastal destination that supports the city's long-term growth."

The construction award follows a full sell-out of released phases, consistent with the presales-led delivery model that has characterized Dubai's off-plan residential market. Bay Grove Residences units have been marketed in the low AED 2,000s per square foot, with starting prices around AED 1.9 million. Dubai Islands apartment prices have tracked upward — from approximately AED 2,162 per square foot in 2024 to around AED 2,317 per square foot by early 2025. Rental yields on Dubai Islands apartments have ranged between 7% and 8% annually, and the submarket has recorded triple-digit transaction growth over the past year.

Bay Grove Residences: Full Community Scope

Once all phases are complete, the wider Bay Grove Residences community will comprise 1,154 homes across 15 residential buildings. The remaining 617 homes across Phases 2 and 4 are still in planning, with further construction appointments to be announced separately.

The project is part of the broader Dubai Islands destination, located off the coast of Deira. The master-planned waterfront development encompasses five islands and more than 20 kilometers of beaches, with planned open spaces, parks, golf courses, hospitality offerings, cultural hubs, and waterfront residential communities overlooking the Arabian Gulf. The destination is aligned with the Dubai 2040 Urban Master Plan.

Dubai Islands Market Context

Dubai Islands has emerged as one of the faster-growing residential submarkets in Dubai over the past two years. Off-plan apartment prices on the islands have risen steadily, with the submarket median reaching approximately AED 2,165 per square foot in 2026 year-to-date based on Dubai Land Department data. The submarket's combination of beachfront access, proximity to Deira — roughly 10 minutes from Gold Souq Metro Station and 20 minutes from Dubai International Airport — and large-scale master-plan infrastructure has drawn both end-user and investor demand.

Sources

Dubai Holding — Nakheel Awards Main Construction Contract Worth Over AED 800 Million for Bay Grove Residences on Dubai Islands