Kleindienst Group has begun construction on its Heart of Europe project at the offshore Dubai island development, The World.
The company officially broke ground on the Germany island with the help of the specialist engineering contractor Foundation Construction Group (FCG).
Kleindienst hailed the move as a "milestone" for the entire World archipelago, noting that construction began just one week after FCG's appointment and that offshore logistical concerns had not hindered progress.
Chief executive Josef Kleindienst said: "While we are the first developer to begin construction, we are aware of several more that are not far behind us.
"The World project is very real, it is taking shape as we speak and I firmly believe that when complete it will become the most expensive property in the emirate of Dubai."
According to the recent Sales Price Index for Dubai, which was launched by the market analyst REIDIN.com in partnership with the Dubai government, Dubai property prices rose 0.7 per cent in the final quarter of 2009.