Dubai confidence remains high as Mudon properties launch

To reiterate that confidence, Dubai Properties also said it will be launching a new company under the Dubai Properties Group umbrella tomorrow, although would give no further details at this stage.

But the confidence displayed by Dubai Properties did not prevent a barrage of questions around the market dynamics and how financial problems elsewhere in the world would impact the Dubai real estate sector, particularly as it is so reliant on foreign investors.

Speaking at Cityscape, Jade El Khalil, Chief Officer - sales and marketing, at Dubai Properties, insisted confidence was still high and that the market was maturing. That might mean consolidation in the real estate sector, and perhaps prices eventually stagnating or dropping, he said, but the outlook overall for the market remained good.

'We're seeing a shift from a speculative based market to a more investor and consumer based market,' he said. 'Confidence levels are higher than they have been over the past few years and the investments will continue to flow in.'

The company used the Cityscape real estate exhibition today to announce prices for its latest development today at Mudon in Dubai.

The Mudon development, which means cities in Arabic, was launched last year, but with Dubai Properties policy now of not selling off-plan, sales are only just beginning. The master-planned community is based around the five Middle East cities of Cairo, Baghdad, Damascus, Marrakech and Beruit.

The 348 Cairo Downtown houses, launched today, cost Dhs1,850 per square foot and come in two sizes, 3,998 sq ft and 3,974 sq ft. It puts prices at just shy of Dhs7.4m each and out of reach of many middle income people.

Khalil added that soon the company will be launching Cairo freestanding villas as well, although prices for these were not announced.

The first phase should be completed in 2009, with the whole development ready in 2012.

The total Mudon district, which is cited in Dubailand, is about 73 million square feet in size, and valued at Dhs77bn.

Keep up with all our Cityscape Dubai coverage