Nakheel awards AED 950 million contract for 617 Bay Grove Residences homes on Dubai Islands

It covers 617 homes, from one to four bedrooms, in eight residential buildings. The work also includes the basements, roads and services, and amenities such as pools, sports courts and gyms.

Bay Grove Residences	Homes	Buildings	Main works due
Phase 2	360	4	Late 2028
Phase 4 (final phase)	257	4	Q2 2029
Phases 1 and 3 (earlier contract)	537	7	–
Whole community	1,154	15	–

Nakheel contract announcement, 26 October 2026, as reported by WAM and Construction Business News Middle East.

The award follows an earlier contract worth more than AED 800 million for 537 homes in seven buildings in Phases 1 and 3. Together, the two contracts are worth more than AED 1.75 billion, and every one of the community's 15 buildings now has a main contractor.

Bay Grove Residences is in the Marina District of Island B, one of the Dubai Islands closest to Deira. The buildings line a bay with a beach and boardwalk, with walking and cycling routes and access to Crystal Beach.

Dubai Islands is a five-island waterfront district of about 18.6 sq km off the Deira coast. Its master plan mixes homes, hotels, parks, beaches and cultural venues.

Phase 4, the final release, has four buildings at the end of the bay, with one-bedroom homes from about AED 2 million. One of its buildings holds only four-bedroom homes and the single penthouse.

A clear path to handover. With a main contractor appointed for every phase, construction can move across the whole community. Nakheel's timetable points to main works finishing in late 2028 for Phase 2 and in the second quarter of 2029 for Phase 4.

Match your payments to progress. Bay Grove's plan is 20% on booking, 50% during construction and 30% on handover. If you own in Phase 2 or 4, keep an eye on site progress against your instalment dates, and check that every payment goes to the project's escrow account.

Think about timing if you plan to rent. Phases 2 and 4 together bring 617 homes to completion within a few months of each other. If you want to let your home on completion, expect other new owners in the same community to be looking for tenants at the same time.

For more on the district, read our story on Nakheel's 3 km Dubai Islands beach.