A suburban Muslim estate is earmarked for Melbourne's outer west with developers targeting Islamic families.

Iqra Village residential project in Melton South has been marketed towards South Asian migrants in what is believed to be Victoria's largest faith-based planned housing development.

The vacant land has been subdivided into 75 lots just off Coburns Rd, a few kilometres from where right-wing extremists staged violent protests against Islamic migration. There are visions to build a mosque at the centre of the land.

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