Nakheel Awards Dh2.6B Bay Villas Contract on Dubai Islands

Nakheel Bay Villas project awarded Dh2.6 billion contract on Dubai Islands

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Nakheel has awarded a Dh2.6 billion contract for the construction of Bay Villas on Dubai Islands, marking one of the largest residential project announcements in the UAE this year. The deal, confirmed this week, has been handed to Abu Dhabi-based Fibrex Contracting, which will deliver more than 600 luxury homes across multiple property types.

The development, situated on Dubai Islands, is being positioned as a key addition to the emirate’s growing inventory of premium waterfront communities. The villas will include six-bedroom beachfront residences alongside garden villas, semi-detached homes, and townhouses, each designed with private outdoor spaces and modern layouts.

Nakheel’s choice of Fibrex is notable. The two firms have previously partnered on District One West, part of Mohammed Bin Rashid Al Maktoum City, which features some of Dubai’s most sought-after residential properties. Analysts say the repeat collaboration suggests confidence in the contractor’s ability to deliver large-scale luxury projects on schedule.

According to project details, the three-storey beachfront villas will offer features such as rooftop lounges, formal dining spaces, and expansive display kitchens. The interior design approach, paired with landscaped gardens and panoramic water views, reflects Dubai’s broader push to attract global high-net-worth residents seeking resort-style living.

The project comes at a time when Dubai’s real estate market continues to outperform global peers. The emirate recorded property transactions worth Dh411 billion in the first half of 2025, according to Dubai Land Department data, with villa sales leading price growth. Prime communities such as Palm Jumeirah, Jumeira Bay, and Emirates Hills have already registered record-breaking deals this year, and demand for new off-plan launches remains robust.

Nakheel’s Bay Villas could benefit from this trend. Market observers note that the appetite for waterfront properties has grown sharply since the pandemic, as buyers prioritize space, privacy, and lifestyle amenities. Dubai Islands, with its planned marinas, resorts, and leisure infrastructure, is designed to meet these demands.

Khalid Al Malik, CEO of Dubai Holding Real Estate, described the project as part of a larger strategy to reimagine urban living in the emirate. “This development delivers on our vision of designing waterfront communities that prioritise wellbeing, luxury and privacy, all while offering residents an opportunity to enjoy the best of island living,” he said in a statement.

The announcement also reflects broader shifts in Dubai’s housing sector. While affordability remains a challenge in mid-market segments, the ultra-luxury end has seen little slowdown. In fact, global wealth migration patterns have positioned Dubai as a safe haven, with inflows of investors from Europe, Asia, and the Middle East fueling continued demand.

Bay Villas will provide five distinct property types, ensuring a mix of layouts and pricing tiers. While the flagship beachfront villas are expected to command the highest premiums, semi-detached units and townhouses could attract a wider pool of buyers seeking entry into island living. Real estate brokers suggest initial price bands may start above Dh10 million for smaller villas, while prime beachfront homes are likely to exceed Dh50 million.

The Dh2.6 billion award is also significant for the construction sector. UAE contractors have seen a resurgence in residential and infrastructure projects after a period of subdued activity earlier in the decade. The government’s long-term economic diversification agenda, paired with the ongoing inflows of foreign investment, has reinforced the pipeline of large-scale developments across Dubai.

Dubai Islands itself has been in focus since Nakheel revived the project under a new master plan. Originally conceived as Deira Islands, the rebranded development aims to deliver a modern mix of residential, hospitality, and retail assets, positioning it as a new urban district in the north of the city. With Bay Villas as one of its flagship offerings, the project could help set a benchmark for island-based living in Dubai.

Market watchers expect construction to begin later this year, with phased handovers starting from 2027. Demand from both local and international buyers is anticipated, particularly given the city’s record for selling out premium villa communities in early launch phases. Off-plan sales in Dubai rose by more than 40% year-on-year in 2024, a trend likely to continue through the current cycle.

The Bay Villas award adds momentum to Nakheel’s wider development strategy. The master developer, best known for iconic projects such as Palm Jumeirah, has been reshaping its portfolio with a focus on sustainable and lifestyle-driven communities. Industry insiders suggest the company is aiming to balance heritage projects with new-generation developments that align with evolving buyer preferences.

For Fibrex, securing the Dh2.6 billion deal provides a boost in visibility within Dubai’s highly competitive construction market. Delivering over 600 villas across multiple typologies represents both a logistical challenge and an opportunity to demonstrate capability on one of the region’s most high-profile projects.

As Dubai enters the last quarter of 2025, analysts predict sustained momentum in its real estate market. The combination of policy stability, long-term visas, and high global interest in luxury living continues to reinforce demand for prime residential assets. Bay Villas on Dubai Islands, with its scale and exclusivity, is expected to become a focal point of that growth story.

What is Nakheel’s Bay Villas project on Dubai Islands?

It is a Dh2.6 billion luxury residential development with over 600 villas across five property types.

Who is building Bay Villas on Dubai Islands?

Nakheel awarded the contract to Fibrex Contracting, a UAE-based construction firm.

What types of homes are included in Bay Villas?

The project includes beachfront villas, garden villas, semi-detached villas, and townhouses with private gardens.

When will Bay Villas be completed?

Construction is expected to begin in 2025, with phased handovers from 2027.

Why is Bay Villas significant for Dubai’s property market?

It reflects strong demand for luxury waterfront homes and adds to Dubai’s growing inventory of prime residential projects.

About the Author

CityNest Realty

Founder of CityNest Realty, a real estate brand operating in Mohali and Dubai. Specializing in property sales, investments, and market insights with a focus on trust, value, and strategic guidance to help clients make informed real estate decisions.

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