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Dubai’s property market is witnessing signs of green shoots as the number of transactions increased in the first two month of 2019 while developers also report good numbers as lower prices attract new buyers despite oversupply in the market.

“In the first two months of 2019, there is increase in number of transactions. There are more buyers in the market. The government’s initiatives like 100 per cent foreign ownership and 10-year visa are the privilege that the investors are looking for. We are targeting new markets like Africa, the US and Canada to enhance foreign investments into Dubai,” said Majida Ali Rashid, assistant director-general of Dubai Land Department (DLD).

 

“Dubai’s property, real estate infrastructure as well as investors are pretty matured now,” she said on the sidelines of the first day of the 3-day International Property Show, which began at the Dubai International and Exhibition Centre on Tuesday.

In the first 11 months of 2018, the total value of transactions reached Dh194 billion while Investors pumped in Dh62 billion investments during January to November 2018.

Farhad Azizi, CEO, Azizi Developments, also echoed Majida’s views, saying there is an uptick since December 2018 and the first quarter of 2019 have been better than the same quarter last year.

“The first quarter of 2019 is much better than 2018; things had started to improve from December 2018, not just for us, but for other developers as well. Momentum is picking up and there is a lot of excitement ahead of Expo 2020 Dubai. I believe it is good time to buy because prices are low,” he said.

“The good thing is that new demand is coming from new buyers. Majority of them are end-user and non-residents from China, GCC, Africa, India and Pakistan.”

Azizi pointed out that some developers are also giving business licence on buying a new home as an added incentives to new buyers coming to this market. “We like those things so we have done it as well. Dubai has that ‘wow’ effect and when the ‘wow’ effect is there the trend will pick up. I still think that it is a good time to buy.”

Taimur Khan, research manager, Knight Frank, also acknowledged that demand is there provided the developer is building the right product.

He noted that Dubai’s real estate market will take a couple of years before it gets past the supply glut.

“People are looking at Dubai as a long-term play. A lot of residents are thinking that it is a time to go for a property buy. If you’re here longer than 2 years and 3 months, it makes a lot of sense to buy property with the kind of payment plans being offered in the market,” he added.

Atif Rahman, director and partner of Danube Properties, sees current inventories will be absorbed by the market by winter when demand will pick up and there might not be enough supplies left for buyers. “That’s why, it is the right time to buy for end-users, who can get the best from bargain.”

He noted that Dubai’s real estate market will continue to attract investment, regardless of the demand-supply situation and how it changes based on the market conditions. “Right now, off-plan sales might grow at a slow pace and sale of ready-to-move-in homes might be an attractive proposition, depending on how the developers attract the home buyers.”

According to Property Finder, off-plan properties accounted for 55 per cent of Dubai market transactions in the first 2 months of 2019 while secondary market deals made up the remaining 45 per cent of the share. This is a far cry from the earlier cycles in the Dubai property market when off-plan sales dominated and secondary home transactions trailed by a huge margin. This unusual balance suggests that Dubai is no longer a purely investor-driven market.

In terms of volume, 3,069 off-plan homes exchanged hands while 2,463 secondary market deals were clinched in January and February 2019.

“Robust activity in the secondary market denotes that end-users are still active and purchasing homes in Dubai. When compared to the first two months of 2018, off-plan property transactions have declined by 7.8 per cent this year,” according to Property Finder research.

“Prices in the secondary market continue to be more attractive and affordable, while sellers have been much more motivated, one reason due to their competition with off-plan, ready stock,” said Lynnette Abad, director of research and data at Property Finder. Secondary market transactions in January and February 2019 are down only by a marginal 1.4 per cent in a year-on-year comparison, it added.

For apartments, the Palm Jumeirah, Dubai Marina and International City accounted for the most secondary market transactions in the first two months; while Dubai Hills Estate, Downtown Dubai and Dubai Creek Harbour (The Lagoons) took the lion’s share of off-plan deals.

Outlook

Azizi predicted that the price of an apartment that now costs Dh1 million will increase to about Dh1.1 million by December 2019. “Prices will be 10 per cent more expensive, provided it is a good location project.”

Going forward, Azizi believes that those properties that are closer to Sheikh Zayed Road such as Downtown, Dubai Marina, JBR etc. will continue to witness good demand in the next 5 to 10 years.

Taimur Khan of Knight Frank sees Downtown extension, DIFC 2.0, Business Bay and Jumeirah an interesting developments that will perform well in the next five to 10 years.

“If developers can rightfully match demand with the supply, then there is no reason why we can’t see prices rising at slow but stable rate in the coming years. In 10-years, if we can get CAGR of 3-4 per cent, we would be happy,” he added.

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Developers fast completing residential projects ahead of Expo 2020 Dubai

Residents will be able to buy or rent properties on more flexible terms and conditions as record 41,000 residential units are expected to come online this year due to higher materialisation rate of projects ahead of Expo 2020.

The latest data issued by Property Finder Group indicates that the up-and-coming communities in Dubai are likely to see more homes completed this year while the established neighbourhoods will see only a few additions to their inventory.

The real estate portal said 30 per cent of the 41,000 residential units under construction in Dubai this year are 96 per cent to 99 per cent complete with Jumeirah Village Circle is expected to deliver 3,400 homes, the highest in Dubai.

Lynnette Abad, director of Research and Data at Property Finder, said this is an excellent time for those who are looking to purchase property.

“Considering more than 70 per cent of expats rent, this new supply is very much welcomed as residents are benefiting by upgrading the community in which they reside. As the Dubai property market matures, residents are finally seeing rents reduced to a level that is considered affordable and, in turn, their cost of living is going down,” she added.

 

Shaher Mousli, chairman and CEO of Arthur Mackenzy Properties Group, said 2018 was a slow year in comparison to 2017 and 2016, which caused some projects to slow down. However, last year, there was an influx of investors who came in and pumped money into these projects that were offered to them at good price points by owners and landlords.

“Usually, opportunities arise for investors when there is a slowdown in the market. During a crunch time Dubai has always presented lucrative opportunities to external investors which enables project completion,” he said.

“I believe that a main reason for many projects heading towards completion now is to meet the expected demand during Expo 2020,” Mousl told Khaleej Times.

Over 28,000 homes were handed over in Dubai in 2018, which has been more than the number of units handed over in the past few years, according to Property Finder report.

“I believe Dubai’s real estate market has been extremely resilient in a cloudy weather and continues to remain one of the highest yielding internationally. There are several projects anticipated to complete this year, which in turn will offer the consumer a wider choice in location, price and quality,” said Atif Rahman, director and partner of Danube Properties.

Due to the delivery of these projects, he said a bit of pressure will be felt, but should not be considered a sign for worry. Like it has happened historically in every global market, it will even out over a period of time with the increase in demand through growth in population, he said.

“I expect the demand to catch up from Q3, which shall create the upward momentum for sale price and rentals. It’s a great time for end users and investors to take advantage and be ready to reap the results,” he said.

Higher materialisation rate

Although, over 41,000 homes are scheduled to be completed in Dubai in 2019, there is usually a considerable gap in what is announced and what enters the market. Actual deliveries have been 30 per cent to 50 per cent lower than developer projections. This is because developers usually adjust supply to match actual demand, the report said.

Referring to JLL report, Abad said traditionally materialisation rate has been 40 per cent to 50 per cent. “Supply hit a peak in 2018, however that doesn’t mean the materialisation rate changed due to the number of projects under construction and new project launches,” Abad said.

As of February 2019, the 41,000 units slated for completion in Dubai, 30 per cent are 96 per cent to 99 per cent ready, according to Property Finder. Moreover, 32 per cent of under-construction projects are 91 per cent to 95 per cent complete while 29 per cent of projects being built are 85 per cent to 90 per cent complete. This may result in a higher materialisation rate of projects this year, the report said.

“One of the key reasons behind higher materialisation rate of projects is partly due to the Expo 2020 factor, as most of the projects were planned to support the growth, which is expected from the Expo,” Rahman of Danube Properties said.

He attributed the credit to strong regulatory environment that ensures healthy project delivery and high investor confidence. “The support and control from the regulators has made every Property developers more responsible towards their obligations to complete projects on time.”

Referring to Core latest report on Dubai property market, its head of Research and Advisory Prathyusha Gurrapu said majority of the deliveries are in the affordable to mid-market segment, with Dubailand and Jumeirah Village Circle and Triangle accounting for one-third of all handovers.

“Although the pace of price softening has relatively slowed, we expect a lag in sales and rental price recovery as existing vacant stock and future supply over the next couple of years is expected to outpace steady demand,” he said.

He said many of these developments were planned during the 2014-15 peak.

“We also foresee developers aligning deliveries in the run up to Expo 2020. We have seen handovers increase over the last year, with over 21,700 units delivered in 2018 and expect a higher number of deliveries over 2019 and 2020, despite taking into account conservative realisation rates,” he said.

A good start

A total of 4,441 residential units have been completed in Dubai in the first two months of 2019, of which 4,184 were apartments and 257 were villas and townhouses, according to Property Finder research.

Jumeirah Village Circle will see the highest number of homes completed this year (3,408) and accounts for 8.19 per cent of the upcoming supply in 2019. Business Bay is next up, with 3,152 homes slated for completion in 2019 and accounting for 7.57 per cent of the supply. Third is Dubai Sports City with 3,098 homes to be ready in 2019 and contributing to 7.44 per cent of total supply.

In the areas where new supply will be released, sales and rental prices will continue to adjust based on market demand,” Abad said.

“Over the last year, this has given opportunity to a new market trend where we have seen a significant amount of renters converting into home owners and we believe 2019 will be the year for end-users,” she said.

“For those continuing to rent, we will continue to see the trend where many will upgrade to bigger units or move to more desirable areas with sought after amenities in addition to retaining negotiating power. Both of these trends have increased the amount of disposable income which contributes to the overall economy,” she explained.

New developments such as Mohammed Bin Rashid City, Al Furjan and Town Square will each add over 2,000 homes to Dubai’s residential market this year. Other new projects like Akoya Oxygen, Mirdif Hills, Dubai South and Damac Hills will each add over 1,000 units to Dubai’s residential market across 2019.

Established communities such as International City (512), the Palm Jumeirah (289), Dubai Motor City (276), Dubailand (188) and Jumeirah Golf Estates (95) will only contribute a small portion of the supply pie in 2019.

Bucking this trend are communities such as Downtown Dubai (1,772) and Dubai Marina (944), where considerable construction activity is still on and therefore will see more home completions.

To a question about affordable share in estimated 41,000 units to be completed this year, she said: “If we look at the areas where majority of the supply will be completed, we can expect to see affordable stock in quite a few areas including JVC, Sports City, DSO, Dubailand, Arjan and Dubai South which account for about 33 per cnet of the 41,000 to be completed.”

UAE, Saudi Arabia accounts for more than 66% of GCC construction activity

Construction activity in the UAE and GCC is projected to remain strong, thanks to a heavy pipeline of 27,000 planned projects worth $2.38 trillion (Dh8.734 trillion) across the Gulf region, according to industry analysts and executives.

Data by the BNC Projects Journal disclosed that the UAE and Saudi Arabia accounted for more than two-thirds – at $1.61 trillion (Dh5.9 trillion) – of total planned projects by 2018-end. Last year, around $77.6 billion (Dh284.8 billion) worth of contracts were awarded as compared to $88.8 billion (Dh325.9 billion) in the previous year, a drop of 13 per cent, across the region. As per the BNC Projects Journal, the decline is due to an exceptionally large number of projects that were seen in prior years were driven by Expo 2020 Dubai. Avin Gidwani, CEO, BNC Network, said increased earnings from high oil prices during the early part of 2018 supported the commitment for economic stimuli during the year and 2019 bumper budgets released by the UAE and Saudi Arabia confirm the continued commitment towards revitalising the region’s economy.

As per the January edition of the BNC Projects Journal, contract awards in the GCC in 2019 are expected to increase for utility, industrial and oil and gas projects but may continue to decline for urban construction.

“The increased spending is driven by the UAE and KSA’s bumper budgets, Adnoc’s 2030 Integrated Strategy and KSA’s Vision 2030,” Gidwani added.

The top 3 sectors with the most value of contract awarded in 2018 were residential and commercial ($24.1 billion), transport ($13.1 billion) and oil and gas in region. With projects worth $43 billion currently in tender, the utility sector is expected to outperform the other sectors in terms of project awards in 2019 while residential and commercial sector will remain in the top 3 – even with the decline.

UAE projects

There are currently over 15,000 projects in the UAE estimated at $791 billion, including an estimated $202.8 billion of projects in concept, design and tender stages, positioning the UAE with the second largest project pipeline after Saudi Arabia’s $827.4 billion pipeline.

According to the BNC Projects Journal, $38.9 billion worth of contracts were awarded in the UAE last year, a drop of 9 per cent compared to 2017.

“The UAE enters 2019 determined to kick the economy back into gear, with the announcement of it $16.3 billion budget which is 17.3 per cent larger than last year and the largest budget in the country’s history,” Gidwani added.

It said there are around 18 pavilion projects for Expo 2020 Dubai currently in the concept (7) design (9) and tender (2) phases that are expected to be awarded. These include pavilion projects for Austria, Poland, France, South Africa, India, Thailand, Spain, China, USA, Japan, UK, Nigeria, Oman, Brazil, Bahamas, Sweden and one Opportunity pavilion.

Atif Rahman, director and partner of Danube Properties, said outlook for the construction – particularly for the short term – is good as most contractors are busy finishing the existing contracts and projects.

“The real estate sector worldwide might sometime come under slight pressure in the short term, however in the long term you also make handsome gains. We believe, the market has the ability to absorb the growing supplies and in the next one year or two these properties will be absorbed with growth in demand prior to the Expo 2020,” Rahman said.

But the long term outlook, according to Rahman, depends on the overall global economic growth, oil price and new investment in infrastructure and job creation.

Sudhakar Rao, chairman of Gemini Group, said public utility and infrastructure projects will continue beyond Expo 2020. “So we don’t see any immediate crisis in the construction sector, except payment delays in some areas, which can be resolved with bank’s support.”

“New demand in construction projects will help the sector. The large developers and the public sector spending on housing and infrastructure could help the construction sector and the construction materials sector’s growth. Precast demand is on rise due to its efficiency in achieving faster construction,” Rao said.

Danube’s Atif Rahman said infrastructure, industries, housing and logistics will continue to drive growth of the construction in the UAE. Citing an example, he said Al Maktoum Airport, Union Railway and Hyperloop are some of the major infrastructure – in addition to regular real estate and hospitality projects – will drive the growth.

The Journal data showed that urban construction contributes 45 percent of planned and ongoing work in the GCC and is valued at $1.08 trillion. While GCC hospitality projects market is estimated at $144.6 billion, 13 per cent of all urban construction projects in the region. The value of planned and ongoing oil and gas projects grew by 11 per cent over the course of the year to $373 billion at the end of 2018, up from $334 billion in 2017.

While transport projects, according to BNC Journal, worth $300 billion are either planned or ongoing in the GCC region registering a 10 per cent year-on-year growth.

“With a strong pipeline of projects worth $156.8 billion, the transport sector is expected to witness large contract awards in the year ahead,” it added.

Danube Properties has taken up responsibilities to help and build the future by giving  students specializing in Real Estate Management from SPJIMR, the opportunity to attend a specialized training program to help them understand the real estate sector and become industry leaders.

The training workshop took place on February 11, 2019, which was attended by five -18+ – students along with their teacher. The purpose of this training workshop was to further understand Danube group and Danube properties’ business structure and how the brand is so successful.

The event is part of Danube Properties’ Corporate Social Responsibility (CSR), that aims to develop local talents so that the industry could rely on home-grown human resources and advance in sustainable development.

The training started with Danube properties office tour, then corporate presentations on Danube group’s 25 years of reputable path and concluded by explaining the sales and marketing strategies that have been the pillars of Danube properties success. The workshop objectives were covered in depth to educate and motivate these young minds who are about to become the industry’s future pioneers, as the world is becoming more competitive, where only those with the exceptional strategies and execution techniques will lead.

While speaking about this activity, Mr Atif Rahman, Director and Partner of Danube Properties, said, “I am extremely glad to host this training at our Danube Properties Head office. I’m impressed by the hunger for knowledge these students have and it feels great to satisfy them. These students are our future. They are going to manage the future real estate world and each of them has the potential to be a great business leader.

“Danube Properties always supports CSR activities as such, which help in constructing a better community. As a developer, our key objective is not only to deliver projects on time and with supreme quality, but also to be useful in the society we live in. We promise to come up with more activities like this, to enhance the community and build the future by supporting great initiatives.”

A construction site in Abu Dhabi. The new regulation enables the Central Bank to allow more property financing as needed. Analysts say this is crucial for the completion of projects that had been hounded by funding challenges.

When the UAE Central Bank removed a key hurdle that had long limited the ability of banks to fund real estate projects, it also made sure to remain flexible to counter risks of an overheating market. Announced in November, the regulation abolished a ceiling on banks’ exposure to real estate loans, which had been previously set at 20 percent of the total deposits of banks. A new limit has not been announced, but the matter is under discussion with the UAE Banks Federation.

 

This effectively means that the Central Bank can adjust the ceiling higher or lower based on the performance of the market.

“The cap amendment would act as a ventilator to the current real estate sector wherein we were witnessing cash flow constraint in the market,” says Dhiren Gupta, managing director of 4C Mortgage Consultancy. “The banks could now allocate larger reserves to finance real estate development for both at retail and corporate lending.”

Enhanced liquidity

As more cash pours into the market, Gupta believes the move will ease the stress in the property sector. “It’s been predicted that the loans will grow up to 5 percent in 2019, but it is judgmentally important to maintain current loans to value levels for mortgages,” he adds.

The lifting of the limit also acts as a catalyst to support infrastructural development in the UAE. “Under this new regulation, project finance could see as a major beneficiary, as earlier banks would restrict their lending appetite to finance such development,” says Gupta. “Also, the banks would be flexible in keeping the funding restriction set by the Central Bank. However, so far, it is not sure which loans will fall under the real estate finance.”

The regulation is also expected to uplift the confidence of real estate investors and end users in the UAE market. “The amendment indicates that the UAE Government is striving to maintain strong economic growth for the people of this country,” adds Gupta. “With this new regulation bank appetite to finance real estate development would growth, hence, the market could witness added mortgage transactions in the coming months.”

More aggressive participation

Amer Khan, head of retail products and segments at Standard Chartered UAE, says the amendment will help banks participate more aggressively in the real estate sector, particularly in key growth markets such as Dubai and Abu Dhabi. “It allows banks to prioritise the use of its deposits to fund real estate loans both to the property developers and customer mortgages,” says Khan. “Increased access to bank funding will ensure property developers can complete existing projects and fund new projects as well. This will give ample options for homebuyers and investors. Also, like property developers, individual homebuyers and investors would have access to more funds, which would also encourage them to purchase the property.”

With the 20 percent cap, if a bank’s total deposit is Dh100 billion, the amount the bank is allowed to lend as real estate loans should not exceed Dh20 billion. “If banks already reach this limit, any loan request coming from property developers or mortgage will not be granted,” explains Khan. “If there will be no cap, then the bank may opt to lend more than Dh20 billion to fund real estate loans. This means the real estate sector will have wider access to funds. We can expect completion of projects faster or continuation of projects that were halted due to lack of funds. Also, we can expect more new projects due to access to more funds.”

Sunil Gomes, CEO of Gemini Property Developers, believes the removal of the cap will also give a push to the affordable market segment. “It will stimulate investors, especially the middle-income investors to buy property as the confidence increases due to this new regulation,” says Gomes.

Atif Rahman, director and partner of Danube Properties, says the Central Bank’s move is well timed for the property market. “That will help the banks to support the property and construction sectors, which will now have access to greater liquidity. It is a very timely and significant decision that will help stimulate the real estate market in the UAE.”

At least one new property project and more Danube Home stores are in the pipeline for 2019, Sajan tells Construction Week

Danube Group’s real estate arm, Danube Properties, will focus development activity in Dubai this year, with the launch of at least one new project in the coming months, founder and chairman, Rizwan Sajan, said.

The real estate project will be unveiled in either March or April 2019, and will be similar in size and scale to the $149m (AED550m) Lawnz residential development launched in June 2018.

The unnamed community project will feature amenities such as a swimming pool, a gym, a running track, a cinema room, and shops.

In conversation with Construction Week‘s deputy editor Oscar Rousseau, Sajan told the Construction Week Viewpoint podcast that Danube was “very close” to acquiring the right land plot for its next project.

When asked if this would be Danube’s only new real estate project in 2019, Sajan said: “Our formula is very simple – once we launch a project, it should be sold at least by at least 75-80% [before] we put it to under construction, and only then do we move on to a new project. Am going to launch any other new projects? Yes, I will launch a new a new project, but only if I sell this one by 75-80%.”

Speaking on his plans to take the group forward in 2019, Sajan said the firm would create new jobs in 2019 as it opens more Danube Home stores in the GCC.

Construction Week Viewpoint is a weekly podcast show that regularly features business experts and commentators to discuss construction, real estate development, and related sectors in the Middle East.

Check Podcast:  https://soundcloud.com/constructionweek/podcast-danube-chairman-targets-more-dubai-projects

It is one thing to somehow manage to meet the basic requirements and an entirely different thing to deliver what is actually promised. The difference is the fulfilment of your customers’ aspirations, and hence, your own. Buildings aren’t just buildings, they are a lot more than that. Those in the industry who understand this are able to make good on their promises while the others fall behind. The smallest things add up to make the most significant impact when it comes to constructing buildings. Modern, ergonomic designs need to look at factoring in everything.

On the one hand, low floor area ratios, plot coverage and setback limits need to be focused on. On the other hand, reduced end-user costs, higher convenience, practicality, energy efficiency and added values need to be incorporated as well. All these things come together to catalyse excellent economies of scale and end-user satisfaction alike. To achieve both these primary objectives simultaneously is what enables entities to not just deliver on their promises, but even surpass them often at times.

Efficiency is key

It majorly comes down to efficiency, be it the efficiency of the utilisation of space, or the efficiency of building materials used. It is imperative to understand here that cost efficiency and cost reduction are not the same things. Those focusing on cost reductions often end up falling short on the expectations they set. However, those wasting precious resources on unplanned executions that they think might work out end up in the same boat as well.

Efficiency refers to quality design, low maintenance costs, maximum utilisation of building materials and minimum wastage in any shape way or form, from the construction stage to the point of resale even, when the property has been inhabited for a few years already.

Efficiency lies in the smallest of things, that are most likely to be neglected. When a building is being built, and houses are being designed, for example, there are a lot of things that can be done during the design stage itself that can contribute to reducing maintenance costs and enhancing the quality of housing. The construction of naturally lit corridors and the use of sensor-controlled lighting in common areas, for example, will continue to save costs and energy throughout the life of the building, while making for a beautiful and modern place for customers to want to have a house in. The use of epoxy paint in stairwells in another small way of reducing the overall maintenance cost to customers as the time needed between re-paintings will increase with reduced damage.

Similarly, a number of substantial things can be done inside the house as well. The use of granite flooring and quartz kitchen platforms, for example, goes a long way in contributing to the convenience of the inhabitants because they’re easy to maintain as these surfaces stain less and this also reduces the cleaning cost.

Moreover, their water absorption is minimal and their nature more durable. There are many such areas where attention to detail in terms of quality and costing can really do wonders for the whole architecture itself.

Apt pricing is crucial

Creating an exceptional product or service is essential for it to succeed, but that can only happen if it is priced aptly. Appropriate pricing is the key to driving profitability because your prices are not supposed to make your offering appear unaffordable to your buyers. It should be able to empower your customers to make a positive purchase decision.

For you to add value to your offering, it is not necessary for you to incur towering expenses and pass them on to your customers. A smart strategy and attention to detail can actually enhance the quality of your offering manifold without increasing its price because affordable housing doesn’t have to lack imagination, and quality inputs don’t always cost a bomb.

It is crucial to understand that delivering what you promise is not just about meeting the customers’ needs; it is also about fulfilling their dreams. An offering that delivers on its promises is an offering that creates its own market.

The writer is director and partner of Danube Properties. Views expressed are his own and do not reflect the newspaper’s policy.

News Highlights

• Danube Properties sold out 1,032 units at Lawnz at the International City, including 350 units snapped up in 4 hours!
• Danube Properties offered studios starting from Dh290,000 at Lawnz
• Danube Properties delivered 831 residential units worth Dh1.12 billion including 171 townhouses within Dreamz project worth Dh500 million by March 2018
• Dubai-based developer plans to deliver 880 more units later this year
• Danube Properties portfolio exceeds US$1 billion involving 4,744 units in 11 projects

Dubai, UAE

Danube Properties, a major Dubai-based property developer, announced that its latest project – the Dh550 million Lawnz – has been sold out in 5 days from its launch.

The project’s Phase-1, which was launched on June 20, 2018 – right after the holy month of Ramadan and Eid celebrations, created a massive interest amongst the home buyers – who sees a greater value in Lawnz project – a gated community that provides all luxury community facilities and services – at a very affordable price that starts from Dh290,000.

“The sell-out of the Lawnz in the hot summer months – a very quiet and low season for business – is a live demonstration of the public faith in the Danube brand and the customers’ confidence in our ability to deliver quality homes at an affordable price and on time, which is very crucial for the end-users who invest their life savings with us,” Rizwan Sajan, Founder Chairman of Danube Group, said.

“This is also a strong testimony of the fact that there is no shortage of buyers if the properties are offered at the right location, right price, right payment plan and the right delivery schedule. Our industry trend-setting 1 percent payment per month, that helps the property buyers to move in to their homes after paying only around half the prices of the property – is a key to the success of our real estate projects.

“This payment plan – the first in the Middle East by a private developer – is an ideal solution for the UAE’s middle income households who were priced out by luxury developments. Danube Properties believes in inclusiveness and sees affordable homes as the future of the real estate market in the UAE.”

Lawnz, Danube Properties’ 11th project – the Dh550 million Lawnz at the International City – comprises of 1,032 units that raises its portfolio to 4,744 units with a development value exceeding Dh3.7 billion, spread across 11 successful projects.

Construction of the project is expected to start in 2018 with completion in 2020. Lawnz is Danube Properties’ first project at the International City and its first gated complex.

The Dh550 million Lawnz offers 1,032 residential units, ranging from studio, one and two-bedroom apartments. The project is conveniently located at the International City Phase 1. The Super lavish amenities include a massive 3.8 Acres Promenade which offers Canal, Sunken Plaza, a fully equipped health club, swimming pool, steam and sauna room, multi-purpose hall, jogging track, barbecue deck, badminton court, multi-purpose court and a high tech surveillance system for the protection and security of the residents. The property also comes with a 42 metres wide entrance and outdoor cinema.

Among the residential units, 50 percent of the units are studio apartments while 40 percent are one-bedroom apartments and 10 percent are two-bedroom apartments.

The building design and architectural aesthetic was created to reinforce the design strategy of Danube, which helps maximise the living space while delivering convenience of community living. The project dedicates 50 percent space to open areas with an emphasis on greenery and landscapes.

Atif Rahman, Director and Partner of Danube Properties, says, “The customer response for the first phase of the project – about half of the total inventories – was amazing and overwhelming. However, the response to the second phase was even better – so much so that we sold 350 units in 4 hours – an industry record!

“One of the key aspects of our sales strategy was to give priority to the end-users and the first-time buyers, who used to view housing very unaffordable. However, our sale strategy put them at the forefront of our massive marketing campaign – by bringing down the price barrier below Dh300,000 for the first time in recent history.

“As a developer, we work for the satisfaction of home owners – our biggest stakeholders – and it is important to make them feel confident with our properties and our approach. It is exactly what we have done with Lawnz sales and I am glad that we now have a large customer pool who earlier could not think of buying a home in Dubai. Now they have bought their dream homes – from Danube Properties.”

Danube has delivered 831 properties so far including the handover of 302 units within Glitz Residences 1 and 2 and 358 in Glitz Residences 3 as well as 171 townhouses at Dreamz project till March 2018. It will deliver a further 870 units later this year.

Danube Properties, part of the Danube Group, entered Dubai’s real estate market in June 2014 with Dreamz at Al Furjan – which was sold out at launch. Established in 1993, Danube Group, the UAE’s largest supplier of building materials and home furnishing, this year celebrates 25^th anniversary.

In 2017, Danube awarded five construction-related contracts with a combined value exceeding Dh392 million a year it started delivering homes. These include a Dh221 million main construction contract recently awarded for Miraclz Tower near Miracle Gardens at Arjan that will host 599 units including 591 apartments.

Danube Properties also awarded a Dh146 million contract for the main construction package for the Resortz project. The 17-month contract will see the project gets ready for occupancy by the second quarter of 2019. Resortz will host 444 units including 419 apartments, 25 retail outlets, landscaped environment that appears more like a five-star resort, than a residential compound.

Danube Properties has so far launched 11 residential projects, of which four have been delivered, two are getting ready for delivery while four others are at various stages of construction and one in tendering stage.

The company has one of the fastest development-to-delivery ratio in the region’s real estate market where timely delivery of properties remains a major challenge. That way, Danube Properties’ performance in construction and delivery is helping strengthen buyers’ trust in real estate.

 

Danube Project Development Fact-Sheet

Danube Projects	Residential Units	Development Value	Status
Dreamz	171 Townhouses	Dh500 million	Delivered
Glitz Residence I	151 Units	Dh135 million	Delivered
Glitz Residence II	151 Units	Dh135 million	Delivered
Glitz Residence III	358 Units	Dh350 million	Delivered
Starz Tower	454 Units	Dh300 million	Delivery in 2018
Glamz Residence	426 Units	Dh270 million	Delivery in 2018
Miraclz Tower	599 Units	Dh400 million	Under Construction
Resortz Tower	444 Units	Dh300 million	Under Construction
Bayz	463 Units	Dh450 million	Tendering Stage
Jewelz	463 Units	Dh300 million	Launched
Lawnz	1,032 Units	Dh550 million	Launched
Total 11 Projects	4,744 Residential Units	Dh3.69 billion	Development/Delivery

Editor’s Note

About Danube Properties

Danube Properties, part of the Danube Group, made its foray in to the real estate market in June 2014, by launching the Dh500 million 171 townhouses at Al Furjan. Since then, it continued to expand its development portfolio by launching Glitz Residence I, II, III, Starz, Glamz, Miraclz, Resortz, Bayz, Jewelz and Lawnz projects.

The company currently has a development portfolio of 3,680 units, with a combined value exceeding Dh3.14 billion. It is delivering about 830 units in 2017-18, with a combined sales value of Dh1 billion – or a third of its portfolio value.

About Danube Group

Established in the year 1993, Danube Group was founded and cultivated under the leadership of Rizwan Sajan, who is the known to be the Founder and Chairman of the Group. Starting off as a small trading firm, the company is moving from strength-to-strength, expanding its foothold in the region, and has established itself as the No. 1 building Materials Company along with other branches under its vast umbrella.

In 2015, the company recorded a turnover of Dh5.14 billion and has been growing ever since. Moreover, Rizwan Sajan was ranked 12^th among the ‘Top 100 Indian leaders in the UAE’ List by Forbes Middle East.

The company provides more than 25,000 products in stock and in-house value added services in all of its multiple set of showrooms across the Middle East region and India. The company operates from its head offices in JAFZA with logistics facilities across the region which amounts to 5.5 million square feet and includes kiln drying facility, factory and warehouses of the group.

From a small trading firm, Danube has grown into one of the largest building materials company in the region, with its diversified branches worldwide including UAE, Oman, Bahrain, Saudi Arabia, Qatar and India, in addition to procurement offices in China and Canada. Danube has a team of more than 1,800 people working across strategic locations across the GCC and India.

Among its flagship companies, Danube Home – the Home Interior Retail arm – has showrooms in major shopping malls across the region and in India. In UAE it has showrooms in Sheikh Zayed Road, Dubai Festival City, Bawadi Mall – Al Ain, Abu Dhabi and standalone outlets in RAK, Fujairah and Abu Dhabi as well. In Oman we have 5 showrooms (Salala, Nizwa, Sohar, Baraka and Al Khuwair). Danube Home has a showroom in Bahrain – Salamabad as well.

News Highlights 

• Danube Properties offers studios starting from Dh290,000 at Lawnz
• Danube Properties delivered 831 residential units in four projects worth Dh1.12 billion
• Dubai-based developer plans to deliver 880 more units later this year
• Danube Properties portfolio exceeds US$1 billion involving 4,744 units in 11 projects

Danube Properties, a major Dubai-based property developer, announced that it has sold 80 percent of the Phase I of Lawnz – its Dh550 million affordable housing project – within three days of the project’s launch when buyers were seeing queueing up for tokens.

The company had earlier completely discouraged wholesalers seeking to buy out blocks of apartments for re-selling, so that the end-users could benefit from the opportunities created by Danube Properties with the super attractive pricing in the market.

The Phase I of the project consists of 515 residential units, comprising studio, one-bedroom and two-bedroom hall apartments with prices starting from Dh 290,000/- , 499,000/- and 699,000/- respectively.

Lawnz, Danube Properties’ 11th project comprises of 1,064 units which will take its portfolio to 4,744 units with a development value exceeding Dh3.7 billion in four years after its foray in the real estate market in 2014.

Construction of the project is expected to start in the third quarter of 2018 with completion in 2020. Lawnz is the first gated complex at the International City with state-of-the-art amenities.

“The huge response to Lawnz reflects the fact that there is no shortage of buyers for the right quality property to be built at the right location with the right pricing and the right payment plan,” Rizwan Sajan, Founder Chairman of Danube Group, said. “Prices of a studio apartment at Lawnz starts at Dh290,000 – the lowest price for such a property that also comes with high-quality finishing kitchen appliances and bathroom amenities. This is unprecedented in the market.

“On top of that, our attractive and industry trend-setting 1 percent per month payment ensures the delivery of the property after payment of 51 percent – meaning that the customer could either move in to the apartment after paying 51 installments and save the rents to pay for the rest of the 49 installments.

“Or the property investor could repay the balance 49 installments from rental income – if the property is bought for investment purpose. This means that the buyer actually acquires the property after paying half the price of the property!”

The Dh550 million Lawnz offers 1,032 residential units, ranging from studio, one and two-bedroom apartments. The project is conveniently located at the International City Phase 1. The super lavish amenities include a massive 3.8 acres promenade which offers canal, Sunken Plaza, a fully equipped health club, swimming pool, steam and sauna room, multi-purpose hall, jogging track, barbecue deck, badminton court, multi-purpose court and a high tech surveillance system for the protection and security of the residents. The property also comes with a 42 metres wide entrance and outdoor cinema.

Atif Rahman, Director and Partner of Danube Properties, says, “Ever since we started to tune in the market of the new project, our phones continued to ring from customers and brokers trying to understand the project. We have declined many requests from large investors to snap up part of the project and had decided to open the doors for the real property buyers who have been priced out by the high price in the market.

“Hundreds of property buyers lined up at our office to get appointment to buy the apartments. I am happy to announce that Lawnz has invoked unprecedented response that strengthened our self-belief in our ability to serve Dubai’s real estate market and property buyers in a bigger way. This demonstrates public trust in Danube Properties.

“Over the last four years, Danube Properties – with its customer-focused approached – has created a solid reputation in the market for delivering quality homes at affordable prices. Our customers who have moved into their dream homes offer solid testimonies of the good work put together by our team.

“Lawnz reflects our focus on community living and our strong belief in customer happiness in line with the vision of the UAE’s leadership to build a happy nation.

“The strong response of our project launched in the middle of summer season and after Ramadan, reflects the fact that Danube has defied the industry trend in a low season. Lawnz proved that buyers will continue to buy homes regardless of the timing. There is no bad timing for the launch of a good project.”

Danube has delivered 831 properties so far including the handover of 302 units within Glitz Residences 1 and 2 and 358 in Glitz Residences 3 as well as 171 townhouses at Dreamz project till March 2018. It will deliver a further 870 units later this year.

Danube Properties, part of the Danube Group, entered Dubai’s real estate market in June 2014 with Dreamz at Al Furjan – which was sold out at launch. Established in 1993, Danube Group, the UAE’s largest supplier of building materials and home furnishing, this year celebrates 25^th anniversary.

Danube Properties has so far launched 11 residential projects, of which four have been delivered, two are getting ready for delivery while four others are at various stages of construction and one in tendering stage.

The company has one of the fastest development-to-delivery ratio in the region’s real estate market where timely delivery of properties remains a major challenge. That way, Danube Properties’ performance in construction and delivery is helping strengthen buyers’ trust in real estate.

Danube Project Development Fact-Sheet

Danube Projects	Residential Units	Development Value	Status
Dreamz	171 Townhouses	Dh500 million	Delivered
Glitz Residence I	151 Units	Dh135 million	Delivered
Glitz Residence II	151 Units	Dh135 million	Delivered
Glitz Residence III	358 Units	Dh350 million	Delivered
Starz Tower	454 Units	Dh300 million	Delivery in 2018
Glamz Residence	426 Units	Dh270 million	Delivery in 2018
Miraclz Tower	599 Units	Dh400 million	Under Construction
Resortz Tower	444 Units	Dh300 million	Under Construction
Bayz	463 Units	Dh450 million	Tendering Stage
Jewelz	463 Units	Dh300 million	Launched
Lawnz	1,064 Units	Dh550 million	Launched
Total 11 Projects	4,744 Residential Units	Dh3.69 billion	Development/Delivery

Editor’s Note

About Danube Properties

Danube Properties, part of the Danube Group, made its foray in to the real estate market in June 2014, by launching the Dh500 million 171 townhouses at Al Furjan. Since then, it continued to expand its development portfolio by launching Glitz Residence I, II, III, Starz, Glamz, Miraclz, Resortz, Bayz, Jewelz and Lawnz projects.

The company currently has a development portfolio of 4,744 units, with a combined value exceeding Dh3.69 billion. It has delivered about 831 units with a combined sales value of Dh1.12 billion.

About Danube Group

Established in the year 1993, Danube Group was founded and cultivated under the leadership of Rizwan Sajan, who is the known to be the Founder and Chairman of the Group. Starting off as a small trading firm, the company is moving from strength-to-strength, expanding its foothold in the region, and has established itself as the No. 1 building Materials Company along with other branches under its vast umbrella.

In 2015, the company recorded a turnover of Dh5.14 billion and has been growing ever since. Moreover, Rizwan Sajan was ranked 12^th among the ‘Top 100 Indian leaders in the UAE’ List by Forbes Middle East.

The company provides more than 25,000 products in stock and in-house value added services in all of its multiple set of showrooms across the Middle East region and India. The company operates from its head offices in JAFZA with logistics facilities across the region which amounts to 5.5 million square feet and includes kiln drying facility, factory and warehouses of the group.

From a small trading firm, Danube has grown into one of the largest building materials company in the region, with its diversified branches worldwide including UAE, Oman, Bahrain, Saudi Arabia, Qatar and India, in addition to procurement offices in China and Canada. Danube has a team of more than 1,800 people working across strategic locations across the GCC and India.

Among its flagship companies, Danube Home – the Home Interior Retail arm – has showrooms in major shopping malls across the region and in India. In UAE it has showrooms in Sheikh Zayed Road, Dubai Festival City, Bawadi Mall – Al Ain, Abu Dhabi and standalone outlets in RAK, Fujairah and Abu Dhabi as well. In Oman we have 5 showrooms (Salala, Nizwa, Sohar, Baraka and Al Khuwair). Danube Home has a showroom in Bahrain – Salamabad as well.

• Danube Properties launched AED 300 million tenth project Jewelz
• The new Project offers 463 fully furnished residential units
• Offering luxury living at an affordable price and 15% returns on the total investment along with the benchmark 1 percent monthly payment plan

7^th March 2018; Dubai, UAE: Following on from the sales success of its projects, the UAE’s leading developer Danube Properties announced its highly anticipated 10th Project called Jewelz, showcasing the future of affordable luxury housing. The project was unveiled by Mr Rizwan Sajan the Founder & Chairman of the Danube Group and Mr Atif Rahman, the Director and Partner, Danube Properties Development, in the presence of the Media, Brokers as well as Senior Management of the company.

The AED 300 million project offers 463 residential units, ranging from Studio, One & Two-Bedroom Apartments. The project is attractively located on a plot adjacent to the park with a private entrance leading to the property. The amenities include a fully equipped Health Club, Swimming Pool, Steam & Sauna Room, Multi-Purpose Hall, Jogging track, Barbecue Deck, Badminton Court, Paddle Tennis Court and a high tech surveillance system for the protection and security of the Residents. The building design and architectural aesthetic was created to reinforce the design strategy of Danube, which helps maximize the living space while delivering convenience of community living. The project dedicates 50% space to open areas with an emphasis on greenery and landscapes.

Commenting on the launch, Mr Rizwan Sajan, Founder and Chairman, of the Danube Group, said: “I am extremely proud to announce our 10th project Jewelz next to Miracle garden at Arjan. This project is launched with a refined Customer in mind, offering luxury living at an affordable price and 15% returns on your total investment along with our benchmark 1 percent monthly payment plan. We have ensured the best value is offered in terms of price, facilities and services etc. The project reflects our continued commitment and confidence in the market and ultimately our endeavor to create a better quality of life for our Customers.

Referring to the real estate market, he further added: “Dubai is a lucrative and transparent market when it comes to investment. You will get the highest return on investment, high capital appreciation, and ease in doing business and strong economic growth. In addition to, low property prices, excellent rental yields, investor-friendly payment plans and the best cosmopolitan atmosphere. The current property prices are in favour of those who want to buy their own home. It is cheaper for a person to buy a property in Dubai than to rent one, especially if they are planning to settle in the country long term”.

Mr Atif Rahman, Director and Partner of Danube Properties said, “I am pleased to launch our latest project today. This takes our portfolio to AED 3.14 Billion reinforcing our presence in the industry. I reiterate that as company we have remained focused on two things “what we deliver” and “when we deliver” with detailed attention to the process more than the result. I want to assure everyone that as a builder we go beyond the top line or the margins we make and we are driven by the Customer satisfaction. There has been continued increase in interest from people looking to invest in affordable home and we promise to offer the best in its class asset in this segment. We carefully design our projects to meet end-users needs and deliver a community lifestyle, evidence of which can be seen at our recently delivered projects. I also want to highlight that alongside the brand credibility, excellent location & design at extremely competitive prices, Danube Properties empowers its Customer by offering a convenient payment plan which helps them build their home.”

Editor’s Note

About Danube Group

Danube Group traces its origin through Danube Building Materials. Established in 1993, the company provides more than 25,000 products in stock and in-house value added services in all of its multiple set of showrooms across the Middle East region and India. The company operates from its head offices in JAFZA with logistics facilities across the region which amounts to 5.5 million square feet and includes kiln drying facility, factory and warehouses of the group.

From a small trading firm, Danube has grown into one of the largest building materials company in the region, with its diversified branches worldwide including UAE, Oman, Bahrain, Saudi Arabia, Kuwait and India. In addition to procurement offices in China, the Danube Group has a team of 3000 plus people working across strategic locations across the GCC and India.

About Danube Properties:

Danube Properties, part of the Danube Group, made its foray in to the real estate market in June 2014, by launching the Dh550 million 175 Townhouses under Miraclz at Al Furjan. Since then, it has continued to expand its development portfolio by launching hugely successful projects including Dreamz, Glitz Residence I, II & III, Starz Tower, Glamz Residence, Miraclz Tower, Resortz Residence and Bayz Tower. All of the projects by Danube Properties have enjoyed phenomenal success since their launch. The affordable prices and flexible payment plan offered, combined with the development’s convenient location and a wealth of ultra-modern facilities for 21st-century living, has proved very popular among buyers.

Danube Properties has successfully maintained one of the fastest launches to delivery ratio, with a clear focus on delivering supreme quality at the most affordable price.

For further information, kindly contact:

Anamika Pandey

Senior Public Relation Executive

Danube Group Corporate Headquarters

Jebel Ali Free Zone

P.O. Box 18022

Tel: +9714 8085587