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Dubailand to have huge residential community
Dubai Properties, a member of Dubai Holding and one of the emirate's big three master developers, will build a Dh40 billion residential community within Dubailand.
- By Robert Ditcham, Staff Reporter
- Published: 23:55 October 17, 2007
- A model of the City of Arabia in Dubailand on display at Cityscape Dubai at the Dubai International Convention and Exhibition Centre. The three-day property exhibition closes today.
- Image Credit: Vazhisojan/Gulf News
Dubai: Dubai Properties, a member of Dubai Holding and one of the emirate's big three master developers, will build a Dh40 billion residential community within Dubailand.
The Mudon mega-project will house approximately 50,000 residents in five zones built to resemble the Arab cities of Baghdad, Beirut, Damascus, Cairo and Marrakech.
At 73 million square feet, the project is Dubai Properties' biggest development to date, edging ahead of the company's 64 million square foot Business Bay project.
The first phase of the six phase project is scheduled for completion in 2009, ahead of expected full delivery in 2012.
Speaking at yesterday's announcement during the Cityscape conference, Dubai Properties CEO Mohammad Binbrek said the huge investment displays the company's confidence that Dubai's expanding population will fuel growth in the property market.
"This is probably the most ambitious project we have undertaken so far. It's a time that we are very bullish about the market," he said.
Mudon will include 3,200 villas and town houses, and a further 8,500 apartments. The units will vary from studio flats through to six-bedroom villas with sales set to start next year. No unit prices have been released by the company.
As a mixed-use development, Mudon will include retails outlets, office space, hotels, restaurants and other services, as well as an 11 million square foot golf course. Construction has already started on several parts of phase one, the company said, without disclosing the identity of contractors. Dubai Properties will be fully responsible for developing the project, unlike the Business Bay project where numerous plots are sold to third party developers.
Although money generated from off plan sales is now controlled in escrow accounts, rather than fully available to developers, Binbrek said Mudon will be completely self-funded. "We do not seek any bank finance," he said.
Meanwhile, property analysts have stressed that strong demand exists for a limited number of villas in Dubai, leading to appreciation rates which have far outpaced those for apartments.
The supply/demand mis-match has resulted in villa premiums for new developments hitting 79 per cent on average in the second quarter of 2007 compared to 26 per cent for apartments, according to figures supplied by property services company Asteco.
Nakheel, a member of Dubai World, recently launched the Al Furjan project in Dubai, which will supply 4,000 homes.
'No IPO at this stage'
Dubai Properties will not go public for at least another five years, the company's CEO said yesterday. "Dubai Properties does not intend to go for an IPO at this stage," said Mohammad Bin Braik.
"I won't say that will be forever as each organisation has an evolutionary phase. But is it something that will happen within the next three to five years? I can categorically say no."
Bin Braik said the company will first expand the value of its project portfolio beyond the current Dh350 billion to at least Dh700 billion before it will consider selling its shares to the public.
He said the company's next target is to expand its portfolio to Dh500 billion.
"Like any organisation, it (an IPO) is something that might come up in five years, but we are not yet there and it isn't a subject which has been discussed."
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