Danube Properties in Dubai is all set to launch three new projects this year. The developer is known for affordable housing and reported a massive 78.5% rise in sales in the previous year 2018. The company has sold a total number of 1,869 residential units till now, 89 of which are ready to move in and 1,780 off-plan properties.
Danube Properties is the development arm of the Danube Group which is a multidimensional conglomerate. Danube Group entered in Dubai’s real estate sector in June 2014 and saw only a rising graph with each passing year. The success rate of the Group can be seen by the projects it has developed so far. Danube Properties boasts a portfolio of more than 5,000 residential units in a total number of 12 projects worth over $1 billion collectively, as of April this year.
The company recorded a 78.5% increase in sales of residential units last year. The business it did last year helped bringing its total market share of off-plan sales to 10.6% in the city of Dubai, which is a jump from 5% in 2017. As a result of massive increase in sales and higher market share, the company is planning to launch more projects in 2019. Its core purpose is to capitalise on the demand for affordable housing in Dubai.
Rizwan Sajan, who is the founder and chairman of Danube Group announced in a recent interview that:
“There will be launches. We will probably do the same numbers that we did last year… We will probably do one after Ramadan,”
Danube Properties launched three projects last year and all proved to be a massive success. The projects it launched last year were ‘Jewelz’ in Arjan, ‘Elz’ at Arjan and ‘Lawnz’ in International City Phase 1. Danube Properties has awarded approx AED 1.6 billion worth of construction contracts, that includes 10 out of 12 projects launched by the company so far.
Sajan further said that:
“Our formula is very simple, launch one project at a time, if that is sold successfully we will go to the next one,”
Workforce of Danube Properties has also been increased to 220 in last year, up from 151 in 2017. With moving ahead with a policy of developing one project at time, Sajan thinks that there is no need to build up a land bank in Dubai, especially at this time when land prices are constantly falling throughout the emirate.
“We don’t have a land bank, we buy one at a time. The price is not going up so there is no point having a land bank. We buy the land as and when we need it… Land prices have come down, I say about 20-25 percent in the last couple of years.”
Dubai’s property market has seen a constant fall in the last few years and analysts expects a same pattern of drop in prices of property this year too. One of the main reasons for the drop has been over supply in the market, while tough economic conditions also made developers to cut their prices down in order to sell property.