The new scheme, which provides 250 luxury one, two and three bedroom apartments, including penthouses, will be located on the crescent of Palm Jebel Ali.

Hussain Sajwani, chairman and chief executive officer of the Damac Group, said that within Palm Springs are a diverse range of commercial, business, retail, leisure, parking and lifestyle facilities, providing an outstanding home that offers the quality and services of a world class hotel: a resort destination in its own right.

He also said that all the residential projects launched by Damac till now have done very well with Marina Terrace, the Waves and Palm Terrace already sold out. Also 65 per cent of Lake Terrace has been sold out, he added.

Sajwani said that the coming of more new projects in the Dubai market is not impacting the pricing in the property market that is just about opening up to the 1.8 billion residents in the region including the Indian subcontinent.

"I am very bullish on the Dubai property market and do not agree to the view that the market is over supplied. In fact, we are at the beginning of a boom in the property market that has a long way to go. Dubai is emerging as a great holiday destination, which will further boost the demand in the local property market," he said.

On the new project, he said that the scheme has private landscaped grounds, beaches and a man-made peninsula and marina that stretches out into the Arabian Gulf to a new island restaurant.

Scheduled for completion in 2007 and designed by award winning architects WBTL, Palm Springs forms a wave shaped arc that rises to an equivalent of 17 storeys at its central apex.

Sajwani said that among a host of other services, residents at the new property will have a concierge managed by a leading international hotel operator. There will be also a water taxi service from the private marina, which will link Palm Springs with other islands that form the palm with their diverse range of shopping, leisure and commercial facilities.

"Palm Springs is one of the most exciting and outstanding address: both a home and a resort destination, enhanced by the very best luxury hotel level service. The homes offer an ideal opportunity to homeowners and investors looking for an exclusive and world class real estate investment," he said. Wahid Attalla of Nakheel said that the Palm Jumeirah has been fully sold out and with Palm Springs, Palm Jebel Ali, which is 40 per cent larger than Palm Jumeirah, has now been opened up.

Replying to queries on the legal issues related to owning properties by non-nationals in Dubai, he said that there are no laws in the country that bar foreigners or expatriates residing in the UAE from buying properties. Besides, now the federal and the Dubai governments are in the process of drafting a law that would provide a proper legal infrastructure for the business of property and real estate in the country.