President Mohamed Nasheed has visited Gulhi Fallhu, a reclaimed area of 50 hectares to be developed into an industrial-residential area.
The project originally stated that 2500 houses would be built in the area.
Global Projects Development Limited (GPD) is running the operation in conjunction with Gulhifalhu Industrial Zone Limited (GIZL).
Since the project began in March 2011 a foundation for a mosque has been laid and a port opened.
During his visit, the President examined the progress of the residential flats, the mosque and pre-school planned for Gulhi falhu.