• Home
• News Article

The Universe is response to huge demand for coastal living: Nakheel

DUBAI - The Universe, Nakheel 's latest offshore reclamation project which draws upon the solar system as its inspiration, is being developed in response to demand for off-shore developments, Nakheel 's CEO, Chris O'Donnell said yesterday. It could take up to 15 and 20 years to complete and will cover 2500 hectares, he said. Reclamation work is expected to start within six months.

"There is a huge demand for coastal living," and projects such as The World, Palm Jumeirah and Palm Jebel Ali have helped to stimulate this demand, O'Donnell said. "They have been very successful." Palm Jumeirah is now "fully sold," he said, and prices are also increasing "significantly," he said, reflecting demand for this type of living. He did not give specific details, however. "We are very happy with the return which are in keeping with the rest of Dubai," he said, adding that 50 per cent of The World has also been sold.

The Universe is a reclaimed island development, which draws its inspiration from the wonders of the solar system, with islands in the shape of the sun, the moon and the planets.

It is being launched at its initial concept stage and will evolve following engineering, feasibility and environmental studies that are already underway. Once these studies have been conducted, a full masterplan will be created. "We are still in the concept phase, looking at engineering and planning," said Shaun Lenehan, head of environment, in the design group. He also emphasised that the outcomes of Nakheel 's environmental impact studies would determine the design of the project.

The Universe will be a flagship development of Nakheel 's sustainability initiative Blue Communities, to which Nakheel is committing Dh500 million over five years. Borne out of a staff initiative, Blue Communities seeks to fund research and development activity, and promote active engagement with international experts on the issues of sustainable development, construction, management and governance of coastal communities around the world.

"We hope that governments and other developers around the world join us in this initiative," said O'Donnell, adding that he would like an independent body to be formed. "It would be great if it were an independent body, not just a Nakheel focus," he said.

Blue Communities will also advocate the establishment of a rating system that will allow consumers to know the sustainability of the development in which they are living. The index would give a rating out of five, for example, explained O'Donnell. "It is our long-term aspiration to get a rating system," he said, adding: "It won't come overnight but will take some time."

Nakheel has also announced a second concept project, to redevelop Port Rashid. In a press statement Nakheel said "it is committed to preserving and expanding this site of historic importance with a new urban waterfront that will create real estate, generate jobs, attract tourism and help drive economic growth for Dubai and the UAE".

Redevelopment plans are underway, which involve the expansion of the existing Port Rashid land area through land reclamation. The proposed development is a mixed-use urban waterfront adjacent to Bur Dubai. The estimated residential population will be 200,000.

Port Rashid will continue to operate as the main port in Dubai for tourist and cruise vessels and this will be integral to the redevelopment, the Nakheel statement said. Most port operations are being transferred to Jebel Ali as a result of increased customer demand for its state-of the art facilities.

The development will include a maritime museum.

Nakheel has not given any figure for the cost of developing these concept projects. However, O'Donnell estimates that Nakheel 's combined worth, based on the value of its landbank and projects, is $80 billion, This includes the property portfolio of Istithmar , whose hotel portfolio was brought under the Nakheel Hotels banner in December.

Earlier this month Nakheel announced the development of Dubai Promenade, which, on completion, will accommodate around 10,000 residents. Reclamation work on that project is to be completed by March with construction beginning mid-year. There will be a centre piece wheel-shaped hotel and Nakheel is "negotiating with the developer to manage the hotel project," said O'Donnell.

Of Palm Deira he also said: "We expect that within the next 12 months you'll see buildings come out of the ground."

BY LUCIA DORE (Assistant Editor, Business)

© Khaleej Times 2008