Work to recommence on The World?

The World, Dubai

Hampered by delays, postponed schedules and then topped with the Dubai financial crisis, The World project has come to symbolise Dubai's property slump and Nakheel's financial woes, however it has been indicated that work will recommence on the project in the first quarter of next year.

The Kleindienst Group, responsible for the 'Heart of Europe' part of the The World project, have said they will start construction on the 'Germany island' next year as well as other parts of the European section. 'The Heart of Europe' project will include six islands in the complex man-made archipelago, located around 4km off the coast of Dubai.

The 'Europe' islands will include a part of the Netherlands Island with a leisure area and its own beach, which will be called Amsterdam, a luxury shopping arcade and two 5-star hotels in an area to be called St Petersburg and a dolphin pool on the island of Austria.

Constant work in process

Despite land reclamation on The World being completed in January 2008, developers have had to postpone work due to the financial crisis. However, real estate agents aren't missing a beat with under-construction apartments and villas poised to go on sale.

Real estate companies tasked with selling units on Spain, France and Kazakhstan said they hoped there would be a renewed appetite for off-plan investment by next year. However, there will be changes due to new financial constraints - original property designs have been amended to reflect current market conditions, and many buyers are currently waiting approval from the regulatory body before work can commence.

In October, pre-Dubai debt crisis, Nakheel's Marwan Al Qamzi, group managing director, said of the project, "We are working with a core group of purchasers who are revising their designs to account for the changes in the economy."

Meanwhile those who have bought islands have put their development plans on hold until the market stabilises. Safi Qurashi, who bought Great Britain for US$60m in May 2008, recently said that work on his island would begin again soin the new year, however his plans to develop The World's Moscow island, which he bought for US$58m in March last year, are on hold.

Relevant articles:

The Dubai debt crisis | Offshore construction projects |

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