Cityscape special

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Marrakesh city in the Mudon development.

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The Mudon golf course and clubhouse.

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A record-breaking 45,000 regional and international investors, property developers, government authorities, architects, designers, consultants and industry professionals from around the globe witnessed the unveiling of the world's most spectacular residential and commercial property projects at Cityscape Dubai 2007.

Leading UAE developers including Dubai Properties, ETA Star, Saraya Holdings and Omniyat Properties released details of upcoming projects while industry heavyweights Nakheel and Emaar promoted their wide range of high profile projects to the expo attendees.

The expo hosted special guests, including most notably Sheikh Mohammed Bin Rashid Al Maktoum Vice President and Prime Minister of the UAE and Ruler of Dubai, who paid a surprise visit on the second day of the event.

The show also played host to billionaire American property guru Thomas J Barrack Jr who delivered the opening address and Hollywood movie star Patrick Swayze.

The three-day event was spread over a floor area of 70,000 sq m hosting 1,000 regional and international exhibitors and developers marketing the booming Middle East multi-billion dollar property industry.

The full value of the deals completed during the show is yet to be announced, however the total is expected to surpass the US$160 transacted during Cityscape Dubai 2006.

Arabian Property brings you a round-up of news and views from the record-breaking real estate event.

Dubai Properties

Dubai Properties has unveiled a US$11bn 678-hectare mixed-used development to be built in Dubailand, a mixed-use development.

Mudon will house almost 50,000 people and include a range of villas, townhouses and apartments, and a 93-hectare golf course. The project will be done in six phases and is scheduled for completion by 2012. Phase one and two of the project are underway and are anticipated to be finished by the end of 2009.

The design of the development is themed around five prominent Arab cities, including Damascus, Marrakesh, Cairo, Beirut and Baghdad. Mohamed Binbrek, CEO at Dubai Properties, said the developer chose these five cities in an attempt to "bring the past into the future".

Binbrek said the project would be entirely self-funded and dismissed claims that the developer is set to go public with an initial public offering (IPO) in the near future.

"We do not intend to IPO at this stage. Maybe when we reach a (US$190bn) property portfolio, then we'll consider it."

He also said the developer is confident demand still exists for such residential projects, despite recent speculation about oversupply and a possible property price correction in Dubai in the future.

Binbrek said the firm was very confident about the Dubai residential property market. He expected Dubai Properties to announce further mega projects in 2008, he added.

The project would be entirely self-funded, he said. The launch follows the announcement of Dubai Properties' latest development within Business Bay, the US$1bn Bay Square. The 46.5-hectare development will be made up of 13 buildings, including a boutique hotel and an exclusive residential tower.

Other Dubai Properties projects include the Business Bay Vision Tower and Executive Towers, Culture Village, the Jumeirah Beach Residence and The Villa and Al Waha Villas in Dubailand.

Al Fara'a Properties

Al Fara'a Properties, the flagship subsidiary of the Al Fara'a Construction Group launched The Manhattan, a US$96m luxury apartment complex located within Jumeirah Village.

Al Fara'a Construction Group is a conglomerate of business entities including Al Fara'a General Contracting, Unibeton, Belgium Aluminium and Glass and Al Sabbah Electro Mechanical.

The Manhattan, which was unveiled at Cityscape is inspired by the urban residences of 1930s New York. The project offers 355 units, which comprise a selection of studio, one, two and three-bedrooms apartments.

Natasha Gangaramani, properties director at Al Fara'a Properties, said the project was the first of a series of six launches Al Fara'a planned over the next six months.

"We launched T he Manhattan at Cityscape, as we believe it is a valuable platform for the real estate sector. Participation will help us network with serious buyers and international investors and provide an ideal opportunity for visitors to experience our latest venture and the uniqueness of the Al Fara'a brand," she said.

ETA Star

ETA Star launched its first master development La Italia at Cityscape.

The US$680m La Italia project is a 32 million sq ft Italian-themed residential community, located at the Falconcity of Wonders in Dubailand.

La Italia will consist of 22 separate building blocks of low-rise residences in Venice, Rome and London clusters. Work is expected to begin on La Italia in March 2007 and be completed within five years.

Abid Junaid, Executive Director, ETA Star, said the group was confident that La Italia would set a benchmark for newer property developments in Dubailand.

Mohammed Ali, General Manager of business development at ETA Star, said the group was receiving mostly regional interest in the project at Cityscape.

However, interest in the project was also strong at the expo from ex-pat Indian and Pakistan nationals, and buyers from Iran, Russia and the UK. Ali said he had observed a larger presence of American and South Korean investors at Cityscape 2007.

He attributed this to a slowing American property market and greater ease for South Koreans to invest money overseas.

Nakheel

The recently introduced escrow account law is not a full performance guarantee for UAE property purchasers, according to David Nicholson, legal counsel at Nakheel.

Speaking at the Cityscape real estate expo, Nicholson advised real estate buyers to conduct their own due diligence when researching a local property developer.

"The escrow account law is not a full performance guarantee. Buyers should seek sufficient information on their developer. The escrow helps but the developer must also have sufficient equity or loan finance or the development may still not be built."

Despite issuing the warning, Nicholson said Nakheel still felt the introduction of the accounts was a win-win scenario for both developers and buyers.

"It's a win-win for developers because it gives them a marketing edge, and it's an advantage for consumers but its just not a full performance guarantee."

In view of increasing regulations in the UAE market, developers must be prepared to give full disclosure of material facts regarding their projects, he added.

"The market is changing, there are more and more developers. To be successful, developers are going to need to be more transparent."

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