Nakheel Awards AED 950 Million Construction Contract for 617 Homes at Bay Grove Residences on Dubai Islands
Dubai, UAE, Oct. 26, 2026 – Nakheel, a member of Dubai Holding Real Estate, has awarded Parkway International Contracting LLC a construction contract valued at more than AED 950 million for Phases 2 and 4 of Bay Grove Residences on Dubai Islands, the company announced.
The contract covers 617 homes ranging from one to four bedrooms across eight residential buildings, together with basement works, associated infrastructure and amenities including swimming pools, sports courts and fitness centres. The contract value equates to roughly AED 1.54 million per home, a construction-cost metric rather than a sale price or development value.
Nakheel Contract Details for Phases 2 and 4
Phase 2 comprises 360 homes across four buildings, with main construction works expected to be completed by late 2028. Phase 4 comprises 257 homes across four buildings, with completion anticipated in the second quarter of 2029.
The award builds on Nakheel's earlier contract of more than AED 800 million for 537 homes across seven buildings in Phases 1 and 3. That package, awarded to Metac General Contracting, covers 296 homes in four buildings in Phase 1 and 241 homes in three buildings in Phase 3, with completion expected in late 2028.
Contracts Now Cover All 1,154 Bay Grove Homes
Together, the two contracts represent more than AED 1.75 billion in main construction awards and cover all 1,154 planned homes across Bay Grove Residences' 15 buildings. Based on the combined contract values, the awards average approximately AED 1.52 million per planned home.
With main contracts now awarded for every phase, the project has a construction pipeline that extends through 2029. Nakheel has used two separate main contractors, Metac General Contracting and Parkway International Contracting, across the four phases.
Khalid Al Malik, Chief Executive Officer of Dubai Holding Real Estate, said: "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."
Tarek Zoabi, Managing Partner of Parkway International Contracting LLC, said: "We are pleased to partner with Nakheel on the next stages of Bay Grove Residences. Our team is focused on safe, disciplined delivery across both phases, with close attention to build quality, coordination and the agreed programme."
Bay Grove Residences and the Dubai Islands Master Plan
Bay Grove Residences is planned as a waterfront community with landscaped communal spaces, walking and cycling routes and access to Crystal Beach. The project sits in the Marina District of Dubai Islands.
Located off the coast of Deira, Dubai Islands is a five-island waterfront destination spanning 18.6 square kilometres. Its master plan includes residential neighbourhoods, hospitality, parks, leisure and cultural destinations as part of Dubai's longer-term urban development. The scheme, formerly known as Deira Islands, also includes more than 59 kilometres of waterfront and 20 kilometres of beaches, alongside parks, promenades and cycling infrastructure.
Delivery Outlook
The two packages involve 15 buildings and substantial basement, infrastructure and amenity works, with phased completion dates from late 2028 through the second quarter of 2029. The schedule points to a multi-year delivery programme rather than a single handover.
The Bay Grove award follows other recent Nakheel activity on Dubai Islands. On Oct. 5, 2026, the developer unveiled Bay Estate, a new gated waterfront community at the destination.
Sources
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