In another sign of Dubais property market resurgence, construction work is being revived on The World, a man-made island project that resembles countries of the globe. The archipelago, developed by local firm Nakheel, was one of the more high-profile schemes to stall after the property crash of 2008.
The project has been one of the most challenging in the region. Only a few of the islands have been significantly developed, as investors have found it difficult to sort out challenges such as ferrying people and materials back and forth from the mainland, as well as providing electricity and water on the islands.
But that is set to change as the fortunes of the emirates real estate sector improve. The UAE-based Kleindienst Group is moving ahead with its The Heart of Europe scheme and has already overcome significant challenges. Last year, it signed an out-of-court agreement with Nakheel for AED622m ($169m) to settle a dispute regarding the project. Several other buyers have also reached settlements with the developer.
With its legal issues resolved, Kleindienst can focus on the challenges of delivering a scheme several kilometres off the coast of Dubai. It will also face the challenge of developing a project that stands out in a city that boasts many innovative schemes. Most extravagantly, the development will include climate-controlled outdoor areas where it will rain and snow, proving yet again that nothing in Dubai is easy, even when times are good.