The World holds investor interest

Dubai : Dubbed one of the new world wonders, Dubai's archipelago of 300 artificial islands off the shoreline lies sparkling in the sun and continues to attract interest from buyers.

Despite rumours that the entire project was on hold, developer Nakheel says that it has finished the first phase as planned, meaning all islands are done. 70 per cent of the project, constructed roughly like a map of the world, have been sold, a Nakheel spokesperson told Gulf News.

"The latest island was sold in August this year, and 33 islands have been handed over. Sales are by invitation only," the spokesperson said.

The islands are sold ‘plain', meaning without infrastructure such as power and water supply or a sewerage system. Developers have to plan their own infrastructure.

"Nakheel is not providing infrastructure on the islands. Developers have to plan their own, at least until a critical mass of development activity is reached."

Own infrastructure

In the case of Dubai-based property developer Kleindienst Group, which has bought six islands and last week started to market them, electricity will be supplied by solar power, and fresh water will be shipped from the mainland and stored on the island.

"The price for this services will be paid by the end-user," says Josef Kleindienst, CEO of Kleindienst Group.

"Dewa has said it might provide water and power connection, but only if ten per cent of the entire project is developed."

In the meantime, developers work closely with Nakheel to get their plans for the islands approved and receive other assistance.

"Nakheel's work for the present phase is completed, but we are working closely together with the individual developers to get their construction plans approved and assist them during the progress of setting up property on the islands," the company's spokesperson said.

Kleindienst is full of praise for Nakheel: "They are very supportive to us."

He has sold three plots on the island of ‘Germany' to European individuals — the latest two weeks ago — and will commence construction early next year.

A handover is planned within 12 months, Kleindienst says. He has plans to build six hotels on the islands which he named ‘The Heart of Europe'.

The overall cost amounts to Dh3.1 billion, of which ten per cent has been paid to Nakheel, Kleindienst said.

As soon as the islands are fully paid, the owners get their title deeds and can start to build their properties.

Rumours that the development has been downsized or put on hold are rejected by Nakheel. "Some foreign media have a wrong perception of such a long-term project."

Nakheel would not give a completion date for the entire project, as this depends on many different factors, starting from the progress sub-developers are making, to infrastructure issues.

No definite date

"We can not give a definite date," the spokesperson said, adding that 2015 could be an estimation.

Islands in the archipelago range from 14,000 to 42,000 square metres. Distances between islands average 100 metres. The entire development covers nine kilometres in length and six kilometres in width and is surrounded by an oval-shaped breakwater island. Roughly 232 kilometres of shoreline was created.

Another project in close proximity to The World is The Universe, a similiar development that is planned to be built in the shape of the Solar System.

This project is still in conception phase, Nakheel says. It is slated to be completed some time between 2023 and 2028 to fill the space between The World and the Palms.

Who bought the islands?

Investment Dar of Kuwait has purchased 14 islands that make up Australia and New Zealand. Irish business consortium Larionovo had plans to develop the Ireland island into an Irish-themed resort, but this development is currently on hold. Singapore-based Cinnovation Group has acquired Nova island as part of a project valued at $200 million (Dh735.6 million). Dubai Multi Commodities Centre will establish a pearling and marine entertainment centre in association with Paspaley Pearling Corporation. It will be located on an island in the Antarctic region. UK-based Salya Corporation has acquired the islands of Finland and Brunei. The islands of Great Britain and Moscow on The World were acquired by Premier Real Estate Bureau. Dubai's Limitless has plans to develop a wellness resort on an island in "Siberia". Turkey island was bought by Turkey's MNG Holdings. China's Zhongzhou International plans to develop a hotel resort on Shanghai island. Austrian Kleindienst Group has bought six islands in he European cluster and named it "The Heart of Europe".