Nakheel denies Palm Deira rumours

Abdullah Bin Sulayem, Nakheel COO, told reporters invited to tour the project that this had nothing to do with current market turmoil or a lack of funds, but was an approach the company was adopting which necessitates that they have available land for construction before proceeding with the whole project.

The special site visit was planned by Nakheel to prove that dredging work has not stopped on Palm Deira, as recent rumours claimed.

A source close to the developer had told MEED that contractors for Nakheel had been told to stop the dredging and reclamation works on new sections in what is the biggest of the Palm man-made islands.

Addressing media today, Bin Sulayem denied the rumours and said that work was going according to schedule, but was following a different approach to that of the other Palms. He made it clear that Palm Deira is not undergoing any down-sizing or reshaping whatsoever, neither are any of Nakheel's projects.

'We are not reclaiming the whole development at once. We need to have the parts closer to the shore reclaimed first so that we have land available for sales and construction. People don't have to wait until the project is 100% complete to move in. Instead we'll work phase by phase and start hosting people when the first project within the first phase is complete,' he said.

Affordable housing

The Palm Deira occupies an area of 80 square kilometres between Dubai Creek and the Sharjah border. It consists of nine major elements including five marinas; Deira Island, Al Mamzar Island, South Island, North Island and Central Island that are located 150m from Sharjah. The island is connected to the mainland by bridges, which are extensions of both the current road transport network as well as the planned Dubai Metro system.

A total of 65% of the whole development will be for residential use. When asked about how much of this would be affordable housing Bin Sulayem said that Nakheel does not have control over pricing as it is down to the developers. But said that if there weren't enough affordable units, Nakheel would then build some, as it did in the International City and Gardens projects. Nakheel will be developing up to 15% of the buildings included in the development.

Palm Deira will also have a 4km-long promenade that will host various leisure and water activities. Phase one includes 1.3km of that promenade and will be completed during the first quarter of 2009.

Earlier this month, Nakheel announced that design work for the Dhs1,980m three 12-lane bridges connecting Palm Deira to the mainland had been completed. The company said that construction of the first bridge, which will be 1km long and 15m tall, has already begun, while excavation work is being carried out at the second bridge, also 1km long. The third bridge is 1.1km long and work on it is due to begin soon.

The first bridge is expected to be partially opened by the second quarter of 2009, and it will be fully completed by the end of 2009.

Sales to begin as of 2009

The first project within the first phase consists of six buildings, three residential and three commercial, and is expected to be finalised within two years after construction is commenced in the first quarter of 2009. Based on this date, the island will host its first residents in 2011.

Sales, however, won't start before the first quarter of 2009, as the company is determined to finalise its work with the Road and Transport Authority (RTA) and Dubai Electricity and Water Authority (DEWA) first.

Also this month, Nakheel joined forces with the RTA, through a special agreement, to connect the transportation network on mainland Deira to the network being developed by Nakheel on Palm Deira. Along with similar integrated networks for the Metro and Marine transport, residents will have the flexibility to travel around the emirates with their preferred mode of transport.

DEWA has approved nine substations on the Palm Deira, and you can clearly see the columns on these substations starting to come out upon visiting the site.

On a weekly basis, the Palm Deira receives some 200,000 cubic metres of sand and 450,000 tons of rock. The size of land reclaimed up to this date is three times the size of Palm Jumeirah. Up to 700 workers work on reclamation, while on average 100-200 people transfer rock from Ras Al Khaimah to the site.

Between 70 and 100 workers work on the sub stations, 400 on the bridge, 500 on the construction of the sales office, 100 workers for the first complex, and 400 to 500 on soil improvement. In total, the labour force on Palm Deira can go up to 4,000 workers per day.

On visiting the Palm Deira site, it was clear that construction work was on-going. But in the market, contractors still say that their contracts have been suspended, mainly due to the fluctuations in construction material prices. And this is not happening just with Nakheel, but other developers as well, a source revealed to AME Info.

See also:
Dubai developers feel the effects of price uncertainty
What does the global financial crisis mean for Dubai real estate?