Developer Heritage Homes says it will create 150 jobs in Peel if its latest housing scheme there is given the final go-ahead.
Dandara last month received planning permission to build 144 more houses in Peel, between Poortown Road and Queen Elizabeth II High School, east of Reayrt Ny Cronk.
But Peel Town Commissioners have lodged an appeal.
A spokesman for Heritage Homes said: ‘We have already seen significant interest in the next phase of housing at Peel which the planning committee has approved but the commissioners have decided to appeal against.
‘We look forward to creating 150 new jobs in Peel in the coming months once the planning appeal has been dealt with.’
Commissioners clerk Peter Leadley said the authority had lodged an appeal on the basis that strategic plans provided for 1,000 new homes in the west of the island - not just Peel - but this figure had already been exceeded by 200.
He added: ‘There are also obvious concerns about the infrastructure being able to cope.’
The construction industry was one of the sectors hit hardest by the economic slowdown in the island that followed the 2007 global credit crunch.
The latest Council of Ministers’ quarterly report describes construction as ‘generally depressed’ with the house building sector reporting low levels of activity.
Construction also had the highest level of unemployment with 153 people looking for work in this sector in March this year – equating to 14.2 per cent of the total unemployed.
But the Heritage Homes spokesman said: ‘There are no job losses at the moment, on the contrary we are hiring.
‘Over the last 12 months our experience is that consumer confidence is definitely improving and the housing market is more buoyant as a result.’
The scheme contains a mixture of two-storey detached, semi-detached and terraced homes along with associated car parking and front and rear gardens. Public open space would also be provided as well as an extension to the existing children’s playground in Reayrt ny Cronk.
Main access for vehicles would be via an extension to the road that leads from the roundabout in Poortown Road.
The area is zoned for housing in the Peel Local Plan.
Heritage Homes said it undertook extensive consultation with interested parties prior to the submission of the application.